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There is a 3-year bond available with a face of PLN 500,000, interest 6% pa, coupons...

There is a 3-year bond available with a face of PLN 500,000, interest 6% pa, coupons paid semi-annually. It is expected that the YTM will be fixed during maturity period at 8% pa. Estimate how would the PVB at issue date change if YTM were to immediately increase to 12% pa and stay fixed during maturity period? Please use the best possible estimation (approximation).  

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jeff jeffy answered 2 years ago
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