A 6.60 percent coupon bond with 10 years left to maturity is priced to offer a 8.2 percent yield to maturity. You believe that in one year, the yield to maturity will be 8.0 percent. Assuming semiannual interest payments, what is the change in price the bond will experience in dollars? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Change in bond price
A 6.60 percent coupon bond with 10 years left to maturity is priced to offer a 8.2 percent yield to maturity. You believe that in one year, the yield to maturity will be 8.0 percent. Assuming semiannual interest payments, what is the change in price the bond will experience in dollars? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Change in bond price
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6DTM
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Transcribed Image Text:Problem 7-13 Bond Prices and Interest Rate Changes (LG7-5)
A 6.60 percent coupon bond with 10 years left to maturity is priced to offer a 8.2 percent yield to maturity. You
believe that in one year, the yield to maturity will be 8.0 percent. Assuming semiannual interest payments, what is
the change in price the bond will experience in dollars?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
Change in bond price
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