Exhibit 18.1 Use the Information Below for the Following Problem(S)

question 46

Multiple Choice

Exhibit 18.1
Use the Information Below for the Following Problem(S)
A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually.
-Refer to Exhibit 18.1.Estimate the percentage price change for this 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