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There is a 9%, 23 year note bond which has a ytm of 9%. The...

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Finance

There is a 9%, 23 year note bond which has a ytm of 9%. The ytmalters by one percent down. By how much does the price alter? Ifthe ytm drops by 2%, by how much does the price change? What is theexact percentage change of the bond in the 2 cases?

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4.0 Ratings (397 Votes)
Because bonds are priced at par that means original price 1000 and YTM coupon rate 9 Change in YTM 1 Bond K Nx2 Bond Price Coupon1    See Answer
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There is a 9%, 23 year note bond which has a ytm of 9%. The ytmalters by one percent down. By how much does the price alter? Ifthe ytm drops by 2%, by how much does the price change? What is theexact percentage change of the bond in the 2 cases?

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