A $1,000 par value bond with Four years left to maturity pays an interest payment semiannually with an 8 percent coupon rate and is priced to have a 7.3 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much will the bond’s price change? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

A $1,000 par value bond with Four years left to maturity pays an interest payment semiannually with an 8 percent coupon rate and is priced to have a 7.3 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much will the bond’s price change? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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