Question
Consider a Zerobond (i.e., a bond that pays no coupon payment, meaning that the coupon rate on the bond is 0%) with a par value
Consider a Zerobond (i.e., a bond that pays no coupon payment, meaning that the coupon rate on the
bond is 0%) with a par value of $1,000 that will mature exactly 12 years from today. The current
YTM of this Zerobond is 5.2%. Two years ago the YTM of the same Zerobond was 4.6%. Calculate
the dollar price increase/decrease (2 decimal places) within the last two years. If the bond falls in
price, enter your answer on D2L as a negative value (i.e., put a minus sign before your number with
no space between the minus sign and the number). If the bond increases in price, record the dollar
amount of the increase.Round all dollar answers to 2 decimal places
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