Question
Lenox Company has a 15-year, 5 percent coupon bond outstanding, with semiannual coupon payments. The bond is currently sold at par. If interest rates suddenly
Lenox Company has a 15-year, 5 percent coupon bond outstanding, with semiannual coupon payments. The bond is currently sold at par. If interest rates suddenly rise by 1 percent, what is the percentage change in the price of the bond?
| -10.02% | ||
| -9.91% | ||
| -9.80% | ||
| -9.61% | ||
| -9.50% |
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The Oxford Guide To Financial Modeling
Authors: Thomas S Y Ho, Sang Bin Lee
1st Edition
019516962X, 9780195169621
