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Consider a zero-coupon bond that has a time-to-maturity of 7 years. Whats the percentage price change if its yield-to-maturity changes from 5% to 6% and
Consider a zero-coupon bond that has a time-to-maturity of 7 years. Whats the percentage price change if its yield-to-maturity changes from 5% to 6% and remains at 6% until maturity?
A. -5%
B. -3.6%
C. One cannot tell, since todays price is not given
D. -6.4%
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