One year ago, you purchased a 7.5 percent annual coupon bond for a clean price of $980. The bond now has 7 years remaining until maturity. Today, the yield to maturity on this bond is 6.87 percent. How does today's clean price of this bond compare to your purchase price?
A) 4.24 percent lower
B) 4.70 percent lower
C) 5.48 percent lower
D) 5.52 percent higher
E) 6.61 percent higher
Correct Answer:
Verified
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