Multiple Choice
Estimate the percentage price change for a 5-year $1,000 par value bond, with a 6% coupon, if the yield rises from 8% to 8.5%. Interest is paid semiannually.
A) 2.1%
B) -2.1%
C) 4.4%
D) -4.4%
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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