Question
What is the percentage change in price for a zero coupon bond if the yield changes from 6.5 % to 5.5 %? The bond has
What is the percentage change in price for a zero coupon bond if the yield changes from
6.5
%
to
5.5
%?
The bond has a face value of
$1 comma 000
and it matures in
10
years. Use the price determined from the first yield,
6.5
%,
as the base in the percentage calculation.
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
