Percent change in the market price of the bond

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Walgreens Inc has a bond outstanding with 9.75 percent coupon, paid semiannually, and 17 years to maturity. The market price of the bond is $1,042.43. Calculate the bond's yield to maturity (YTM). Now, if due to changes in market conditions, the market required YTM suddenly increases by 2% from your calculated YTM, what will be the percent change in the market price of the bond?

-15.66%

-17.76%

-14.87%

-14.01%

-17.09%

-16.39%

Reference no: EM131777732

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