Answer the following question regarding bonds:

A bond with a $1,000 face value has a 6% annual coupon rate. The bond matures in 14 years. The current YTM on the bond is 3.6%. If you were to buy this bond and hold it for 5 years, how much would the price change while you hold it? Assume the bond's YTM remains the same. Answer in dollars and round to the nearest cent. [Hint: Compute the prices under the two scenarios and calculate the difference (P2 - P1). For example, if the price dropped, the change would be negative.]

A bond with a $1,000 face value has a 6% annual coupon rate. The bond matures in 14 years. The current YTM on the bond is 3.6%. If you were to buy this bond and hold it for 5 years, how much would the price change while you hold it? Assume the bond's YTM remains the same. Answer in dollars and round to the nearest cent. [Hint: Compute the prices under the two scenarios and calculate the difference (P2 - P1). For example, if the price dropped, the change would be negative.] Type your numeric answer and submit 152.29 You are incorrect Hint P2-P1, where P2 is the price with smaller n and P1 is the price with the larger n. Both prices computed using Eq. 3.8. Careful with the n you are plugging in the formula in the shorter scenario. It needs to be how many years are left to maturity, not how many years passed since you bought the bond. Answered - Incorrect 2 attempts left Resubmit