What is the percent change in the price of this bond

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Question - Consider a 30-year maturity US Treasury bond. This bond has a 3.50% coupon interest rate, a semi-annual coupon payment frequency, a par value of $100 and a 2.25% yield. What is the percent change in the price of this bond if the yield is increased by 100 basis points to 3.25%? Explain your answer clearly and comment on the result.

Reference no: EM133178648

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