Answered: If the current yield of a bond goes…

If the current yield of a bond goes down from 6.3% to 4.8%, by what percent does the market price increase? Round your answer to the nearest percent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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If the current yield of a bond goes down from 6.3% to 4.8%, by what percent does the
market price increase?
Round your answer to the nearest percent.

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