Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question

A 6.5 percent coupon bond with 14 years left to maturity is priced to offer a 7.2 percent yield to maturity.  You believe that in one year, the yield to maturity will be at 6.8 percent.  What is the change in price the bond will experience in dollars?

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