20. Using Duration (LO4, CFA3) A 6 percent coupon bond paying interest semiannually has a modified duration

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20. Using Duration (LO4, CFA3) A 6 percent coupon bond paying interest semiannually has a modified duration of 10 years, sells for $800, and is priced at a yield to maturity (YTM) of 8 percent. If the YTM increases to 9 percent, the predicted change in price, using the duration concept, is which of the following amounts?

a. $76.56

b. $76.92

c. $77.67

d. $80.00

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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