Assume that a 10-year bond pays interest of $55 every six months and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12.34 percent. Given this information, determine the expected total dollar price appreciation for this bond if you buy it today, hold it for 2 ½ years, and interest rates go down to 11.47 percent by the time you sell the bond. Answer choices: $39.56 $45.80 $59.51 $36.69 $52.57 Please answer fast I give you upvote

Assume that a 10-year bond pays interest of $55 every six months and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12.34 percent. Given this information, determine the expected total dollar price appreciation for this bond if you buy it today, hold it for 2 ½ years, and interest rates go down to 11.47 percent by the time you sell the bond. Answer choices: $39.56 $45.80 $59.51 $36.69 $52.57 Please answer fast I give you upvote

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11P

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