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Suppose you buy a bond with an annual coupon rate of 6.5%,3 years to maturity,...

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Suppose you buy a bond with an annual coupon rate of 6.5%,3 years to maturity, and a current yield to maturity of 6%. The face value of the bond is $1,000. One minute after you buy the bond yields for that type of bond jump to 7%. What is the percentage change in price? \begin{tabular}{c} \hline2.7% \\ \hline2.4% \\ \hline2.0% \\ \hline1.7% \end{tabular} Question 8 1 pts I want to make sure your calculator is correctly set up to calculate yield to maturity. Suppose you buy a bond with an annual coupon rate of 4.8%,25 years to maturity, and is currently trading at $945. The face value of the bond is $1,000. When you calculate the yield to maturity do you get 5.2% ? Yes No

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