Question
You bought a 10-year bond with $100 face value at a price of $101 with a coupon rate of 5.00% paid semiannually. After 5 years,
You bought a 10-year bond with $100 face value at a price of $101 with a coupon rate of 5.00% paid semiannually. After 5 years, (5 years left in maturity) you decide to sell it and you find that the new yield to maturity is 6.00% APR. What is the percentage change in the bonds price?
Group of answer choices
-1.46%
-8.36%
-5.21%
5.50%
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
