Question
Consider a 10 year bond which pays 6% coupon semi-annually and has a yield-to-maturity of 8%. How much would the price of bond change if
Consider a 10 year bond which pays 6% coupon semi-annually and has a yield-to-maturity of 8%. How much would the price of bond change if investors required return changes to 7% per year?
Answer
| increase by 6.98% | ||
| increase by 7.51% | ||
| decrease by 6.98% | ||
| decrease by 7.65% |
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick, Marci S. Thomas
5th Edition
1119553849, 9781119553847
