The bond makes annual coupon payments

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You have a four-year bond with a coupon rate CR = 13% and a face value of $1,000. The bond makes annual coupon payments and its yield to maturity is 19% p.a. If the bond's yield to maturity decreases by 1% (i.e., by 100 basis points), find the resulting percentage change in the bond's price. For example, if the bond's price changes from $1,000 to $1,100, then the percentage change in price would be 100x(1,100 - 1,000)/1,000 = 10.00%. Give the answer as a percent with two decimals, e.g., 7.12%.

Reference no: EM131938743

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