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You purchase a $1000 par value bond with 15 years to maturity, paying a semiannual coupon of 7.5%. The yield to maturity (annual yield) on
You purchase a $1000 par value bond with 15 years to maturity, paying a semiannual coupon of 7.5%. The yield to maturity (annual yield) on bonds with comparable risk is 7%. You hold this bond and sell it 5 years later when the yield to maturity (annual yield) on bonds with comparable risk is 10%. What is the change in bond price over the five years?
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