A 10-year bond has just been issued with its coupon rate set at the current market yield

Question:

A 10-year bond has just been issued with its rate set at the current market yield of 6 percent. How much would the price of the bond change (in percentage terms) if the market yields suddenly fell by 50 basis points? How much would the price change if the yield rose by 50 basis points?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...