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Solution Library
Change in the Price of a Bond When Yield to Maturity Increases
Question
An 11-year, 4.5 percent coupon bond pays interest annually. The bond has a face value of $2,100. What is the change in the price of this bond if the market yield to maturity increases to 5.5 percent, from the current market rate of 4.5%?
Summary: This question belongs to finance and discusses about change in the price of a bond if the market yield to maturity increases.
Total word count: 12
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