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 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.) 0.1456 0.1372 0.1299 0.1418 0.2341

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