Consider a bond with a coupon of 7.8 percent, eight years to maturity, and a current price

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Consider a bond with a coupon of 7.8 percent, eight years to maturity, and a current price of $1,035.30. Suppose the yield on the bond suddenly increases by 2 percent.

Use duration to estimate the new price of the bond.

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Calculate the new bond price using the usual bond pricing formula.

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Posted Date: May 18, 2024 05:03 PM

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Consider a bond with a coupon of 7.8 percent, eight years to maturity, and a current price

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