You own a 7%, semiannual coupon bond that matures in 15 years. The par value is $1,000 and the current yield-to-maturity is 7.3%. What will happen to the price of your bond if the yield-to-maturity suddenly increases by 50 basis points?
A) -5.25%
B) -6.23%
C) -4.04%
D) -4.74%
E) -4.41%
Correct Answer:
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