A bond has a par value of $1,000, a coupon rate of 5.21 percent (paid annually), and that matures in 8 years. Assume the market interest rate on this bond is 9.36 percent and it increases 36 basic points. Calculate the percentage change in the value of the bond.

Answer rating: 100% (QA)

To calculate the percentage change in the value of the bond we need to determine the initial value a... View the full answer