Percentage change in the price of the bond


A company issues a ten-year bond at par with a coupon rate of 6% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 7.8%. What was the percentage change in the price of the bond over the past two years?

a) 11.81%

b) -43.04%

c) -10.56%

d) 75.55%

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Finance Basics: Percentage change in the price of the bond
Reference No:- TGS0551196

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