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Provide the new price of the bond

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Reference no: EM133120895

Could you please help me with the following questions? Thank you so much.

 

Background information:

 

Face value is $1000

 

Maturity:  8 years semi

 

Coupon:  9%

 

YTM: 4%

 

Reinvestment Rate:  2.5%

 

a) If the Risk-free rate rises by 75 bps (0.75) provide the new price of the bond and % change based on duration only 

Reference no: EM133120895

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