A 6.6% semiannual pay NYC bond has exactly 12 years to maturity and is currently trading at 102. What is the bond's current YTM? Assuming a 50 basis point increase in yield, what's the bond new price? Assuming a 75 basis point decrease in yield, what's the bond new price?

A 6.6% semiannual pay NYC bond has exactly 12 years to maturity and is currently trading at 102. What is the bond's current YTM? Assuming a 50 basis point increase in yield, what's the bond new price? Assuming a 75 basis point decrease in yield, what's the bond new price?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Question

A 6.6% semiannual pay NYC bond has exactly 12 years to maturity and is currently trading at 102.
What is the bond's current YTM? Assuming a 50 basis point increase in yield, what's the bond new
price? Assuming a 75 basis point decrease in yield, what's the bond new price?

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