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# You have a four-year bond with a coupon rate CR = 2% and a face value...

## Question

###### You have a four-year bond with a coupon rate CR = 2% and a face value...

You have a four-year bond with a coupon rate CR = 2% and a face value of \$1,000. The bond makes annual coupon payments and its yield to maturity is 19% p.a. If the bond's yield to maturity decreases by 1% (i.e., by 100 basis points), find the resulting percentage change in the bond's price.

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