Question: Problem 10-30 Using Duration (LO4, CFA3) You find a bond with 25 years until maturity that has a coupon rate of 10.0 percent and a

Problem 10-30 Using Duration (LO4, CFA3) You find a bond with 25 years until maturity that has a coupon rate of 10.0 percent

Problem 10-30 Using Duration (LO4, CFA3) You find a bond with 25 years until maturity that has a coupon rate of 10.0 percent and a yield to maturity of 8.5 percent. Suppose the yield to maturity on the bond increases by 0.25 percent. a. What is the new price of the bond using duration and using the bond pricing formula? (Do not round intermediate calculations Round your answers to 2 decimal places.) Estimated price Actual price

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