Commonwealth Company has a 1 0 % annual coupon bond with a par value of $ 1

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Question:

Commonwealth Company has a

10 %

annual coupon bond with a par value of $

1000

and the bond matures in

5

years. The current yield to maturity on new bonds is

8 % .

If interest rate increase by

0.5 %

over the next year, how much will the price of Commonwealth bonds change?

Posted Date: May 18, 2024 05:08 AM

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Commonwealth Company has a 1 0 % annual coupon bond with a par value of $ 1

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