Assume a 7 percent; 8-year bond has Macaulay duration of 5.6 years and a YTM of 6.5
Question:
Assume a 7 percent; 8-year bond has Macaulay duration of 5.6 years and a YTM of 6.5 percent. Calculate the approximate price change for this bond if interest rates decline 110 basis points.
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Current price of the bond using the financial calculator FV 1000PMT 35N16IY 4 s...View the full answer
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