Question

A 6.30 percent coupon bond with 10 years left to maturity is priced to offer a...

A 6.30 percent coupon bond with 10 years left to maturity is priced to offer a yield to maturity of 7.6 percent. You believe that in one year, the yield to maturity will be 7.0 percent. Assuming semiannual interest payments, what is the change in price the bond will experience in dollars?

Homework Answers

Answer #1

Calc:

rate is periodic YTM,

nper is number of periods till maturity,

pmt is periodic payment,

fv is future value or the redemption amount at which the bond will be redeemed.

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