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Consider the 4.375 semi-annual coupon paying bond, with maturity 30 months, and maturity value $100,000, trading at $99,468.75. (The yield to maturity on the bond
Consider the 4.375 semi-annual coupon paying bond, with maturity 30 months, and maturity value $100,000, trading at $99,468.75. (The yield to maturity on the bond is y = 0.046024.) Assume a flat spot curve.
if y change 0.046024 to 0.056024, how to calculate the bond price? i calculated the bond price when y is 0.056024, it came out $87108.25 but the answer is $97,173.41 i don't know why the bond price is $97,173.41 when the y is 0.056024
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