You are holding a bond with a 6 year Duration. You expect rates to move from 2%

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You are holding a bond with a 6 year Duration. You expect rates to move from 2% to 3.5% (increase). If the Bond's price is currently $900, what would be the new price (think about the direction of the rate change)?

Posted Date: May 10, 2024 03:26 AM

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You are holding a bond with a 6 year Duration. You expect rates to move from 2%

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As interest rates are expected to increase from 2 to 35 the price of the bond you are holding is exp... View the full answer

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