Calculate the change in the price of bond

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A two years Bond with a face value of $3,000 has a coupon rate of 11% per year with semi-annual payments and a yield of 14% per year. Using the following formula Triangle P/Triangle R= 1/1+R(P*D) calculate the change in the price of this bond if the yield increases 200 basis points (Hint: 1 basis point= 0.0001)

Reference no: EM131897049

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