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  3. you own a 6.5 percent, semiannual coupon bond that

You own a 6.5 percent, semiannual coupon bond that matures in 12 years. The par value...

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Finance

You own a 6.5 percent, semiannual coupon bond that matures in 12years. The par value is $1,000 and the current yield to maturity is6.4 percent. What will the percentage change in the price of yourbond be if the yield to maturity suddenly increases by 25 basispoints?

-2.04 percent

-2.11 percent

-2.31 percent

-2.44 percent

-2.26 percent

Answer & Explanation Solved by verified expert
4.0 Ratings (568 Votes)
Information provided Par value future value 1000 Time 12 years2 24 semiannual periods Coupon rate 652 325 Coupon payment 003251000 3250 Yield to maturity 642 32 First the price of the bond before the increase in the yield to    See Answer
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