Firm B has a 13-year, 5.5 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 6.72 percent. What is the % price change if the yield suddenly increases to 8.36 percent?
Firm B has a 13-year, 5.5 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 6.72 percent. What is the % price change if the yield suddenly increases to 8.36 percent?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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Firm B has a 13-year, 5.5 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 6.72 percent. What is the % price change if the yield suddenly increases to 8.36 percent?
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