asked 120k views
4 votes
A 6.65 percent coupon bond with 15 years left to maturity is priced to offer a 8.3 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.

1 Answer

7 votes

Answer:

Explanation:Assuming Annual Coupon Bond

Current Price :

Bond Value = pv(rate,

nper,pmt,fv)

Nper (indicates the

annual period) = 15PV

answered
User Resting
by
8.1k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.