Next year, County X is planning to issue 6-year, 8% coupon bonds with $1,000 face...
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Next year, County X is planning to issue 6-year, 8% coupon bonds with $1,000 face value. County X projects that the bonds will have a yield to maturity of 6%. Assume that coupons are paid semi-annually . Calculate the dollar price change for the County X bond if the yield to maturity is actually 7% rather than 6% when the bonds are issued. (4 points)
-4.7%
5.2%
4.7%
-5.2%
-3.4%
3.4%
Next year, County X is planning to issue 6-year, 8% coupon bonds with $1,000 face value. County X projects that the bonds will have a yield to maturity of 6%. Assume that coupons are paid semi-annually . Calculate the dollar price change for the County X bond if the yield to maturity is actually 7% rather than 6% when the bonds are issued. (4 points)
| -4.7% | ||
| 5.2% | ||
| 4.7% | ||
| -5.2% | ||
| -3.4% | ||
| 3.4% |
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