Bond Features 

Maturity (years) = 
8 
Face Value = 
$1,000 
Starting Interest Rate 
4.23% 
Coupon Rate = 
4% 
Coupon dates (Annual) 
If interest rates change from 4.23% to 5.02% immediately after you buy the bond today (and stay at the new interest rate), what is the price effect in year 4 ?
State your answer to the nearest penny (e.g., 48.45)
If there is a loss, state your answer with a negative sign (e.g., 52.30)
Total term is 8 years. In year 4, remaining term to maturity is 4 years
Price effect in year 4= $20.81 (loss)
Calculations as below:
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