An investor has just purchased a ten year 5% coupon bond for a price of $69.28 per

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An investor has just purchased a ten year 5% coupon bond for a price of $69.28 per $100 of face value.

What is the approximate percentage change in the price of the bond.

If the yield curve is currently flat at 10% per annum, but is expected fall by 0.5% per annum by the end of the day. Assume annual compounding.

Related Book For answer-question

Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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Posted Date: Jun 08, 2023 04:37 AM

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An investor has just purchased a ten year 5% coupon bond for a price of $69.28 per

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SOLUTION To calculate the approximate percentage change in the price of the bond we can use the form... View the full answer

Financial Accounting an introduction to concepts, methods and uses

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