Determining the price change, Finance Basics

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Determining the price change

Problem:

Currently XYC Corporation's 30 year bonds have a price of $980 and YTM of 6.5%. The bonds just got downgraded and YTM increased to 6.9%.

Required:

Question: How will the price change?

Decreases
Increases
Stays the same

Note: Please provide reasons to support your answer.

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Finance Basics: Determining the price change

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Finance Basics: Determining the price change

Reference No:- TGS0893027

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : How an isometry preserves angles

Q : Effective annual interest rate

Q : Maturity and a market interest rate

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Determining the price change

Reference No:- TGS0893027

Recent Questions Asked Finance Basics

Q : How an isometry preserves angles

Q : Effective annual interest rate

Q : Maturity and a market interest rate

Q : Effect on cash flows of sale

Q : Determining the price change

Q : Purchase of an outstanding bond

Q : Disadvantage or re-working the keyboards

Q : Define one to many relationship

Q : Calculate the frequency

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