You have just purchased a $10-$year bond with a $6\mathrm{.}375\%$ coupon rate, coupons paid annually, with a YTM of $8\%.$ Face value is $$1000.$

Moments after you purchase this bond, the Federal Reserve Open Markets Committee announces that they will cut interest rates by $1\%.$

By what percentage will your bond increase in value? Since this is basically an instantaneous change, assume that NPER$=10$ in all your calculations.

PLEASE NOTE: $**7\mathrm{.}18$ is correct. re doing the problem, I am getting $15\mathrm{.}44,$ using HPR$****$