In: Finance
What is the percentage price change for a zero coupon bond if its YTM changes from 3.7% to 4.9%? The bond's face value is $1,000 and it matures in 7 years. Use the price determined from the first yield, 3.7%, as the base in the percentage calculation. Round to the nearest tenth of a percent. (e.g., 4.32% = 4.3). [Hint: If the price dropped, enter a negative number].