Suppose you have a 10-year bond (the bond will mature in 10 years), with a coupon rate
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose you have a 10-year bond (the bond will mature in 10 years), with a coupon rate of 2.45%. Coupons are paid on a semi-annual basis. The value face value of the bond is $1000. Assume that the yield to maturity of the bond suddenly goes from 2.13% to 2.63%.
What is the impact on the price of the bond percentage ?
Related Book For
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina
Posted Date: