A 4 year bond that pays 7.5% semi- annual coupon was issued when the yield was 8%. If the yield goes down 55 basis point, what would be the predicted price of the bond?
A 4 year bond that pays 7.5% semi- annual coupon was issued when the yield was 8%. If the yield goes down 55 basis point, what would be the predicted price of the bond?
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 4P
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