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# 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....

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?

A.-17.09%

B.-14.87%

C.-17.76%

D.-16.39%

E.-15.66%

F.-14.01%

(i) Yield to Maturity = 9.0... View the full answer

The  percent change  in... View the full answer

The correct option is (E)... View the full answer

So percent change in the market price... View the full answer

D.-16.39% [the change... View the full answer

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