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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. …

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. …
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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

User Denis Stafichuk
by
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1 Answer

5 votes
It’s B Decrease by 51.54 I hope this helps
User Manuel Spigolon
by
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