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Suppose that you invest in a 10-year, semi-annual coupon, $1,000 par value bond when it is first issued.The coupon rate and yield to maturity are
- Suppose that you invest in a 10-year, semi-annual coupon, $1,000 par value bond when it is first issued.The coupon rate and yield to maturity are equal both 8 percent.Immediately after purchase, the annual yield to maturity for the bond falls to 7 percent.What is your percentage gain (loss) on the sale of the bond (use duration to find the answer)?
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
