Question: Bond Features Maturity (years) = 7 Face Value = $1,000 Starting Interest Rate 4.28% Coupon Rate = 4% Coupon dates (Annual) If interest rates change

Bond Features
Maturity (years) =	7
Face Value =	$1,000
Starting Interest Rate	4.28%
Coupon Rate =	4%
Coupon dates (Annual)

If interest rates change from 4.28% to 6.45% immediately after you buy the bond today (and stay at the new interest rate), what is the price effect in year 2 ?

State your answer to the nearest penny (e.g., 48.45)

If there is a loss, state your answer with a negative sign (e.g., -52.30)

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