Question: A 1 0 - year bond has face value ( redemption value ) $ 6 5 0 , 0 0 0 and quarterly coupons of
A year bond has face value redemption value $ and quarterly coupons of Consider the time right after the th coupon has been paid, when the yield is
aWhat is the price of the bond?
bCompute the price of the bond if the yield were to increase by basis point a basis point is of What is the absolute value of the difference between that price, and your answer to part a
cWould the yield have to increase or decrease in order for the bond to increase in value by $
dBased only on your answer to b approximately how many basis points bp would the yield have to move in order for the bond to increase in value by $
Answer as a positive integer.
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