Question: You own a coupon bond with; 1) a market value of $1,000, 2) a YTM of 5.00% and, 3) duration of 3.85 years.
What is the impact on the market price of the bond (in terms of % and in $) if the market rate declined by 1.50%? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.