Question

We have a bond such that, YTM = 6%, coupon rate = 5%, maturity = 10...

We have a bond such that, YTM = 6%, coupon rate = 5%, maturity = 10 years and it pays coupon semiannually. Now suppose YTM goes from 6% to 8%, how the bond price will change?

It will increase by $29.47

It will increase by $129.47

It will decrease by $129.47

It will decrease by $29.47

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