Question: You hold a zero coupon bond when there is a sudden change in interest rates. It has 9 years to maturity. Yield to maturity

You hold a zero coupon bond when there is a sudden change

You hold a zero coupon bond when there is a sudden change in interest rates. It has 9 years to maturity. Yield to maturity is 0.07, and rates change by FALLING -0.003 overnight. By how much does your bond change in value as a percentage or decimal? (Zero coupon bonds assume semi-annual compounding.) O 0.0250 O 0.0273

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