In: Finance
Calvin and Andre both have bonds they bought at par value which pay a 7.75% coupon rate. Calvin's bond has 10 years to maturity and Andre's bond has 20 years to maturity. If interest rates suddenly rise to 9.75%, what is the approximate change in value of Andre's bond?
-17.46%
-12.60%
12.60%
20.17%
-21.15%
17.46%