1094
A 10-year, $75 coupon bond pays coupon annually. The bond has aface value of $1,000. What is the percentage change in the price ofthis bond if the market yield to maturity rises to 9.7 percent fromthe current rate of 6.5 percent? (-19.48% ) Hint: Find the price at6.5%yield and at 9.7% yield first, then calculate the percentagechange= [(ending price/beginning price) A????1 1].
Price at 6.5% Yield to maturity (I/Y):
__________________N ___________________I/Y___________________PMT
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Price at 9.7% Yield to maturity (I/Y):
__________________N ___________________I/Y___________________PMT
__________________FV CPT PV_______________
Percentage change in price:
