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Exhibit 13.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Talmart Corporation bonds have a $1,000 face value and will mature in four years. The
Exhibit 13.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Talmart Corporation bonds have a $1,000 face value and will mature in four years. The bonds have a 7 percent coupon rate. Interest is paid annually, and the required rate of return is 6 percent for these bonds. Refer to Exhibit 13.2. If interest rates increase 50 basis points, what will be the approximate price change for the Talmart bond? a. -1.7 percent b. 1.8 percent c. 1.7 percent d.-17.0 percent e. 17.0 percent
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