What is percentage price change

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Reference no: EM131840070

You own two $1,000 par bonds, one in this problem and one in the next. I want to illustrate something else. Both of these bonds are zero coupon bonds, which simply means they pay no coupon. The first bond matures in 2 years, and yields 6%. If the required yield drops to 6% (instantaneously, so the maturity does not change), what is the percentage price change?

Reference no: EM131840070

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