Question
Given the original price of an 8-year bond with par 1000 and a coupon rate of 6% paid semiannually is 1150. If the yield on
Given the original price of an 8-year bond with par 1000 and a coupon rate of 6% paid semiannually is 1150. If the yield on the bond fell 1% from the original, what effect would this have on the price of the bond? Price _________ (increase/decrease) by ______% (Fill in the blanks) *please give the calculation too (no excel)
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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
3rd Edition
1450421040, 978-1450421041
