Hi, Could someone help me with this problem?


Could someone help me with this problem?

One year ago, an investor bought a 15-year $1,000 face-value bond that has an annual coupon rate of 6%, and interest payments are paid semi-annually. The yield to maturity was 8.3% when the investor bought the bond, but the yield to maturity is 9.2% today.

How much has the price of the bond decreased since the date of purchase?

I tried to find the amount of the first bond and then the second to find the difference but I’m not sure this is the correct way to approach this problem.



FV- 1000

PMT- 60

Solve PV= 1314.156

N-30 (unsure time that has gone by in problem)

I- 9.2/2=4.6


PMT- 60

Solve PV= 1226.386


What am I missing? This doesn’t seem correct.

Thank you.

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