A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond if the market yield rises to 6% from the current yield of 4.5%?
A. 11.11 % decrease
B. 12.38 % decrease
C. 12.38 % increase
D. 14.13 % decrease
E. 14.13 % increase

Answer rating: 100% (QA)

Solution Rate 45 Years to maturity nper 12 years Face va... View the full answer