What happens to the price of a three-year annual coupon paying bond with an 8% coupon when interest rates change from 8% to 8.57% ? Answer in dollar terms to the nearest decimals without the $ sign. Use a "-" sign to denote a price decrease. Do not use a "+" sign.

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
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What happens to the price of a three-year annual coupon
paying bond with an 8% coupon when interest rates
change from 8% to 8.57% ? Answer in dollar terms to the
nearest decimals without the $ sign. Use a "-" sign to
denote a price decrease. Do not use a "+" sign.
Transcribed Image Text:What happens to the price of a three-year annual coupon paying bond with an 8% coupon when interest rates change from 8% to 8.57% ? Answer in dollar terms to the nearest decimals without the $ sign. Use a "-" sign to denote a price decrease. Do not use a "+" sign.
What is the current yield of a bond with a 6% coupon, four
years until maturity, and a price of $1,152.15? In % terms
to 2 decimal places without the % sign.
Transcribed Image Text:What is the current yield of a bond with a 6% coupon, four years until maturity, and a price of $1,152.15? In % terms to 2 decimal places without the % sign.
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