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What will be percent change in market price of bond

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Question 1: Shady Rack Inc. has a bond outstanding with 9 percent coupon, paid semiannually, and 23 years to maturity. The market price of the bond is $1,050.15. Calculate the bond's yield to maturity (YTM). Now, if due to changes in market conditions, the market required YTM suddenly increases by 2% from your calculated YTM, what will be the percent change in the market price of the bond?

Reference no: EM132604656

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