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Consider two Bonds: Ford Motor Company's Bond has $1,000 face value,10-year maturity, pays 5% annual coupon once a year. Tesla's Bond has $1,000 face value,10-year
Consider two Bonds: Ford Motor Company's Bond has $1,000 face value,10-year maturity, pays 5% annual coupon once a year. Tesla's Bond has $1,000 face value,10-year maturity, pays 10% annual coupon once a year. Assume the interest rates (hence YTM) changed from 7% to 8% for both the Bonds.
By what percentage will the Tesla's Bond price change? Enter your answer in the following format: + or - 0.1234 Hint: Answer is between -0.0581 and -0.0695
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