Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 18QAP
Summary Introduction

Introduction: The bond price is the discounted present value of the future cash flow that a bond will produce. The intensity, magnitude, extent, or value of a variable can change to a greater or lesser extent as measured by percent rise and percent decrease.

To calculate: Percentage change in the price of the bonds, showing graph for the bond price versus YTM and interpretation on interest rate risk of the long-term bond.

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Corporate Finance

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