Question
Suppose today is December, 2018. Consider two Treasury bonds. Both of them have face value of $1,000 and have coupon rate of 5%, with semiannual
Suppose today is December, 2018.
Consider two Treasury bonds. Both of them have face value of $1,000 and have coupon rate of 5%, with semiannual coupon payments. The first bond will mature in December, 2019 and the second bond will mature in December, 2028.
What is the (percentage) increase in the 1st bonds value when the yield suddenly drops from 5% to 4%? ______%
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TExES Business And Finance Secrets Study Guide
Authors: TExES Exam Secrets Test Prep Team
1st Edition
1516706862, 978-1516706860
