Question
How much would be the loss in price if an investor purchased a 24-year bond with a $1,000 par value, a 5% coupon paid annually
How much would be the loss in price if an investor purchased a 24-year bond with a $1,000 par value, a 5% coupon paid annually and a 9% yield to maturity at the beginning, only to see market interest rates increase to 13% one year later?
Multiple Choice
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$133.08
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$209.12
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$152.09
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$190.11
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
978-0078025624
