A bond with a 9-year duration is worth $1,086, and its yield to maturity is 8.6%. If the yield to maturity falls to 8.38%, you would predict that the new value of the bond will be approximately $1,083.61 $1,086.00 $1,105.77 $1,088.39

A bond with a 9-year duration is worth $1,086, and its yield to maturity is 8.6%. If the yield to maturity falls to 8.38%, you would predict that the new value of the bond will be approximately $1,083.61 $1,086.00 $1,105.77 $1,088.39

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Question

A bond with a 9-year duration is worth $1,086, and its yield to maturity is 8.6%. If the yield to maturity falls to
8.38%, you would predict that the new value of the bond will be approximately
$1,083.61
$1,086.00
$1,105.77
$1,088.39

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