Suppose you bought a 10-year, $1,000 face-value bond for par 3 years ago. The annual coupon rate on this bond is 10% and interest payments are paid annually. If returns required by bond holders are now 1.5% higher than they were 3 years ago, then how much of a decrease have you experienced in the price of your bond?

Answer rating: 100% (QA)

To calculate the decrease in the price of your bond well follow these steps 1 Calculate the annual c... View the full answer