Bart, LLC, has a 5 year bond outstanding coupon rate of 7%, paid semiannually, and is currently priced at par., which is 1000$. Stein LLC has an identical bond except that it matures in 15 years,. If market rates suddenly drop by 2%, by what percent does each bond price change?

Answer rating: 100% (QA)

To calculate the percentage change in bond prices due to a decrease in market rates we need to use t... View the full answer