Estimate the Percentage Price Change for a 5-Year $1,000 Par

question 93

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

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