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consider the following four bonds that pay annual coupons Bond Years to maturity Coupon YTM A 1 0% 5% B 5 6% 7% C 10
consider the following four bonds that pay annual coupons
Bond | Years to maturity | Coupon | YTM |
A | 1 | 0% | 5% |
B | 5 | 6% | 7% |
C | 10 | 10% | 9% |
D | 20 | 0% | 8% |
the percentage change in the price of the bond "A" if its yield to maturity increases from 5% to 6% is closest to :
A. -4%
B.-6%
C.-1%
D.4%
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