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The current price of a certain semi-annual interest paying bond is $9,205,000, with a 4.5% annual YTM (market rate of interest) and its annual Macualy
The current price of a certain semi-annual interest paying bond is $9,205,000, with a 4.5% annual YTM (market rate of interest) and its annual Macualy Duration is 6.16. If the YTM goes down 1%, what is the new price of the bond? [You will need to compute volatility first before determining the change in bond price. Round your change in interest rate to 5 decimal places and round your bond price answer to the nearest dollar $.]
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