Question: Consider a 1 0 - year semi - annual 4 % coupon bond with $ 1 , 0 0 0 face value. Suppose its YTM

Consider a

10 -

year semi

-

annual

4 %

coupon bond with $

1, 000

face value. Suppose its YTM went up from

5 %

6 % .

How much would its value change in response? Calculate value change as new value minus old value, rounded to the nearest dollar. If the price dropped, the answer is negative, and vice versa.

Consider a 10-year semi-annual 4% coupon bond with $1,000 face value.

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