A bond with a $1,000 par, 4 years to maturity, a coupon rate of 4%, and annual payments has a yield to maturity of 4.1%. What will be the actual percentage change in the bond price if the yield changes instantaneously to 5.3%? (If your answer is, e.g., 1.123%, enter it as 1.123.)

Answer rating: 100% (QA)

To calculate the percentage change in the bond price when the yield changes we can use the bond pric... View the full answer