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Estimate the Percentage Price Change for a Five-Year, $1,000 Par

Question 125

Multiple Choice

Estimate the percentage price change for a five-year, $1,000 par value bond, with a 6 percent coupon, if the yield rises from 8 percent to 8.5 percent. Interest is paid semiannually.


A) 2.1 percent
B) -2.1 percent
C) 4.4 percent
D) -4.4 percent
E) 0 percent

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