Consider a 10-year semi-annual 4% coupon bond with $1,000 face value. Suppose its YTM went up...

 

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Consider a 10-year semi-annual 4% coupon bond with $1,000 face value. Suppose its YTM went up from 5% to 6%. How much would its value change in response? Calculate value change as new value minus old value, rounded to the nearest dollar. If the price dropped, the answer is negative, and vice versa. Type your numeric answer and submit Consider a 10-year semi-annual 4% coupon bond with $1,000 face value. Suppose its YTM went up from 5% to 6%. How much would its value change in response? Calculate value change as new value minus old value, rounded to the nearest dollar. If the price dropped, the answer is negative, and vice versa. Type your numeric answer and submit

Answer rating: 100% (QA)

To calculate the change in the value of the bond in response to an increase in yield to maturity YTM ... View the full answer