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Suppose you have purchased a 30-year, 4.99% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in
Suppose you have purchased a 30-year, 4.99% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond if the market yield to maturity declines to 5.15% from the current rate of 5.90%? Please show all the calculations by which you came up with the final answer. Why did the 30-year bond price change? Please explain your reasoning. (5 Points)
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