An Exxon Corporation zero coupon bond with 3.5 years left to maturity yields 7.60%. An oil spill
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Question:
An Exxon Corporation zero coupon bond with 3.5 years left to maturity yields 7.60%. An oil spill in the Gulf of Mexico increases the risk of holding these bonds and its yield changes by 10 basis points. By what percentage does the bond's price decrease?
Round to 4 decimal places.
Related Book For
Managerial Economics and Strategy
ISBN: 978-0321566447
1st edition
Authors: Jeffrey M. Perloff, James A. Brander
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