Homework Question help Needed

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What is the percentage change in price for a zero coupon bond if the yield changes from 6.5% to 5.5%? The bond has a face value of $1,000 and it matures in 10 years. Use the price determined from the first yield 6.5% as the base in percentage calculation. The percentage change in the bond price if the yield changes from 6.5% to 5% is? (Round to two decimal places)

Jul 1st, 2015

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when yield changes from 6.5% to 5.5% :     9.89%   Answer

yield changes from 6.5% to 5%   :                 15.24%      Answer

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Jul 1st, 2015

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