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A $1,000 Face Value Coupon Bond Will Pay 5 Percent

Question 36

Multiple Choice

A $1,000 face value coupon bond will pay 5 percent interest annually for 12 years.What is the percentage change in the price of this bond if the market yield rises to 6 percent from the current level of 5.5 percent?


A) −5.28 percent
B) −4.26 percent
C) −2.38 percent
D) 1.13 percent
E) 4.13 percent

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