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Problem 6-2 Bond Prices and Interest Rate Changes 1. Calculate the change in price the bond will experience. ? X Sign In XU Bond Prices
Problem 6-2 Bond Prices and Interest Rate Changes 1. Calculate the change in price the bond will experience. ? X Sign In XU Bond Prices and Interest Rate Changes - Excel FILE HOME INSERT PAGE FORMULAS DATA REVIEW VIEW Calibri 11 A M % Paste BIU 9 - A - Alignmehlumbeconditio Format Cell Cells Formattir as Styles Clipboard Font Styles A1 B D E F G H I J 1 2 3 4 A 6.50 percent coupon bond with ten years left to maturity is priced to offer a 8.0 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 5 6 7 8 Coupon rate Maturity Present YTM Expected YTM in 1 year 6.50% 10 8.0% 7.0% 9 10 11 12 13 14 Complete the following analysis. Do not hard code values in your calculations. 15 16 $ Current price Expected price in 1 year Change in price 898.07 =PV(D9/2,D8*2,-D7"1000/2,-1000) ? 17 18
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