You own a bond that pays a 12% annualized SEMIANNUAL coupon rate.The bond has 10 years to maturity.If the discount rate suddenly moves from 14% to 16%,then what is the dollar increase (decrease) in value for the bond?
A) ($90.42)
B) ($89.01)
C) $89.01
D) $90.42
Correct Answer:
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