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Shady Rack Inc. has a bond outstanding with 9.5 percent coupon, paid semiannually, and 19 years to maturity. The market price of the bond is
Shady Rack Inc. has a bond outstanding with 9.5 percent coupon, paid semiannually, and 19 years to maturity. The market price of the bond is $1,045.12. Calculate the bond's yield to maturity (YTM). Now, if due to changes in market conditions, the market required YTM suddenly increases by 2% from your calculated YTM, what will be thepercent changein the market price of the bond?
A.-17.09%
B.-14.87%
C.-17.76%
D.-16.39%
E.-15.66%
F.-14.01%
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