Question
The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from
The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from $900 to $1,100. Calculate the bond price elasticity of this bond .
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
