A 7.50 percent coupon bond with 14 years left to maturity is priced to offer a yield to maturity of 8.3 percent. You believe that in one year, the yield to maturity will be 7.8 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Change in bond price

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A 7.50 percent coupon bond with 14 years left to maturity is priced to offer a yield to maturity of 8.3 percent. You believe that in one
year, the yield to maturity will be 7.8 percent. What is the change in price the bond will experience in dollars? (Do not round
intermediate calculations. Round your final answer to 2 decimal places.)
Change in bond price
Transcribed Image Text:ces A 7.50 percent coupon bond with 14 years left to maturity is priced to offer a yield to maturity of 8.3 percent. You believe that in one year, the yield to maturity will be 7.8 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Change in bond price
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