A 10-year, $75 coupon bond pays coupon annually. The bond has a face value of $1,000. What is the pe

A 10-year, $75 coupon bond pays coupon annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 9.7 percent from the current rate of 6.5 percent? (-19.48% ) Hint: Find the price at 6.5%yield and at 9.7% yield first, then calculate the percentage change= [(ending price/beginning price) A????1 1].

Price at 6.5% Yield to maturity (I/Y):

__________________N ___________________I/Y ___________________PMT

__________________FV CPT PV_______________

Price at 9.7% Yield to maturity (I/Y):

__________________N ___________________I/Y ___________________PMT

__________________FV CPT PV_______________

Percentage change in price:

 

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