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What is the percentage change in price for a zero coupon bond if the yield changes from 5% to 7.5%? The bond has a face
What is the percentage change in price for a zero coupon bond if the yield changes from
5%
to
7.5%?
The bond has a face value of
$1,000
and it matures in
10
years. Use the price determined from the first yield,
5%,
as the base in the percentage calculation.
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