A 13-year, 6 percent coupon bond pays interest semiannually. 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 5.7 percent from the current rate of 5.5 percent?
A) −1.79 percent
B) −1.38 percent
C) −1.64 percent
D) 1.79 percent
Correct Answer:
Verified
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