Question

Consider a 3-year bond with a par value of $1,000 and an 8% annual coupon. If interest rates change from 8 to 6% the bond's price will:___________

a. Increase by $51.54
b. Decrease by 51.54
c. Increase by $53.46
d. Decrease by $53.46

Answer 1

It’s B Decrease by 51.54 I hope this helps