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What percentage will the price of the bond change

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Reference no: EM132819894

Problem 1: Northwest University sold $30 million of 10-year bonds with a yield to maturity of 3.6%. Assuming the bonds were sold at par and pay an annual coupon of $36, by what percentage will the price of the bond change if its yield to maturity increases by 2%?

Select one:

a. -5.6%
b. 1.6%
c. $850
d. -15%
e. 5.6%

Reference no: EM132819894

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