A 6.6% semiannual pay NYC bond has exactly 12 years to maturity and is currently trading at 102. What is the bond's current YTM? Assuming a 50 basis point increase in yield, what's the bond new price? Assuming a 75 basis point decrease in yield, what's the bond new price?

A 6.6% semiannual pay NYC bond has exactly 12 years to maturity and is currently trading at 102. What is the bond's current YTM? Assuming a 50 basis point increase in yield, what's the bond new price? Assuming a 75 basis point decrease in yield, what's the bond new price?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A 6.6% semiannual pay NYC bond has exactly 12 years to maturity and is currently trading at 102.
What is the bond's current YTM? Assuming a 50 basis point increase in yield, what's the bond new
price? Assuming a 75 basis point decrease in yield, what's the bond new price?

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