Question: You hold a zero coupon bond when there is a sudden change in interest rates. It has 17 years to maturity. Yield to maturity is

You hold a zero coupon bond when there is a sudden

You hold a zero coupon bond when there is a sudden change in interest rates. It has 17 years to maturity. Yield to maturity is 0.055, and rates change by FALLING 0.008 overnight. By how much does your bond change in value as a percentage or decimal? (Zero coupon bonds assume semi-annual compounding.) 0.1299 0.1341 0.1372 0.1418 0.1456

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