Bond Prices and Interest Rate Changes A 7 percent coupon bond with 8 years left to maturity is priced to offer a 7.75 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will experience in dollars? (Assume interest payments are semi-annual.)     $21.55     $22.55     $35.00     $44.10

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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Bond Prices and Interest Rate Changes A 7 percent coupon bond with 8 years left to maturity is priced to offer a 7.75 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will experience in dollars? (Assume interest payments are semi-annual.)
   
$21.55
   
$22.55
   
$35.00
   
$44.10
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