You buy a 30-year bond today that pays a 3% coupon (bonds are usually denominated in $1,000's so you will get $30 per year, almost instantaneously the Federal Reserve Bank announces an interest rate hike which now means that the same bond would be issued with a 6% coupon (in other words the required rate of return for the bond has changed).So how much do you lose if you were to sell your bond the next day?

Answer rating: 100% (QA)

Okay lets solve this stepbystep You bought a 30year bond with a 3 coupon The bond pays 30 ... View the full answer