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Twitchy - a kind of junk bond - carries a 10% coupon rate, has a $1,000 face value and matures in 5 years. What is
Twitchy - a kind of junk bond - carries a 10% coupon rate, has a $1,000 face value and matures in 5 years. What is the change in the implicit required return (that is, YTM) of Twitchy, if the current market price of Twitchy, which is $950, falls to $850?
a. -4.10%
b. +2.96%
c. +11.34%
d. -14.30%
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