Question
You bought a 7-year bond with $100 face value at a price of $97 with a coupon rate of 5.00% paid semiannually. After 2 years,
You bought a 7-year bond with $100 face value at a price of $97 with a coupon rate of 5.00% paid semiannually. After 2 years, (5 years left in maturity) you decide to sell it and you find that the new yield to maturity is 11.00% APR. What is the percentage change in the bonds price?
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
15th Edition
978-1337398169
