Consider a Bond That Pays Annually an 8% Coupon with 20

question 54

Multiple Choice

Consider a bond that pays annually an 8% coupon with 20 years to maturity.The amount that the price of the bond will change if its yield to maturity increases from 5% to 7% is closest to:

• A)-$270.
• B)-$225.
• C)-$310.
• D)-$250.

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