Question

A bond has a face (maturity) value of $1,000, 5 years until maturity, an annual coupon...

A bond has a face (maturity) value of $1,000, 5 years until maturity, an annual coupon rate of 7%, and a yield to maturity of 5%. How much will the bond price change in 1 year if the yield remains constant?

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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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