Question
How much would be the loss in price if an investor purchased a 27-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 27-year bond with a $1,000 par value, a 5% coupon paid annually and a 8% yield to maturity at the beginning, only to see market interest rates increase to 13% one year later?
Multiple Choice
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$209.34
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$287.85
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$183.17
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$261.68
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
