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Microsoft has issued a 15-year bond, $1000 face value, paying semiannual coupons with a coupon rate of 9.5%. The yield to maturity on the
Microsoft has issued a 15-year bond, $1000 face value, paying semiannual coupons with a coupon rate of 9.5%. The yield to maturity on the bonds is 6.5%. If interest rates suddenly FALL by 2%, what is the percentage price change of these bonds? NOTE: do not round intermediate calculations, and round your final answer to 2 decimal places. Percentage change in price of the Microsoft Bond is %
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
