How much would the approximate percentage change in the


1. Consider a 10 year bond with face value $1,000, pays 6% coupon semi-annually and has a yield-to-maturity of 7%. How much would the approximate percentage change in the price of bond if interest rate in the economy decreases by 0.80% per year?

2. John Walters is comparing the cost of credit to the cash price of an item. If John makes a down payment of $125 and pays $35 a month for 24 months, how much more will that amount be than the cash price of $711?

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Financial Management: How much would the approximate percentage change in the
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