Shady Rack Inc. has a bond outstanding with 9.5 percent coupon, paid semiannually, and 19 years to maturity. The market price of the bond is $1,045.12. 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?
(i) Yield to Maturity = 9.0... View the full answer