Consider a 6.2 percent coupon bond with five years to maturity and a current price...
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Accounting
Consider a 6.2 percent coupon bond with five years to maturity and a current price of $1,064.70. Suppose the yield on the bond suddenly increases by 2 percent.
a.
| Use duration to estimate the new price of the bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Price | $ |
| b. | Calculate the new bond price. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
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