A bond has a coupon rate of 8 percent, 7 years to maturity, semiannual interest payments, and a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what will be the percentage change in the bond price

-10.02%

Explanation:

We'll use the Excel calculator for this and this will go thus:

The bond price when interest is 7% will be:

Rate = 7%/2 = 0.035

NPER = 7 × 2 = 14

PMT = 8%/2 × 1000 = 40

FV = 1000

Slotting in the Excel calculator will give a value of 1054.6026

The bond price when interest is 2% will be:

Rate = 9%/2 = 0.045

NPER = 7 × 2 = 14

PMT = 8%/2 × 1000 = 40

FV = 1000

Slotting in the Excel calculator will give a value of 948.8859

The Percentage change in bond price will be:

= (-948.89 - 1054.60) / 1054.60 × 100

= -10.02%

answer; /// i believe the correct answer is (all of the above);

750 h and costs $0.60 per bulb.