How much would be the loss in price if an investor purchased a 26-year bond with a
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Question:
How much would be the loss in price if an investor purchased a 26-year bond with a $1,000 par value, a 5% coupon paid annually and a 10% yield to maturity at the beginning, only to see market interest rates increase to 14% one year later?
Multiple Choice
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$112.36
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$160.52
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$128.41
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$176.57
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