What is the percentage change in the price of the ibm bond

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Question - IBM bond is a 6% coupon bond. Ford bond is a 10% coupon bond. Both bonds have 10 years to maturity, make semi-annual payments, and have a yield to maturity of 12%. If current interest rates rise by 2%, what is the percentage change in the price of the IBM Bond?

a. 52.4617%

b. -42.3761%

c. -11.8423%

d. -12.1456%

Reference no: EM132786129

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