30. Using Duration (LO4, CFA3) Suppose the yield to maturity on the bond in Problem 29 increases...
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30. Using Duration (LO4, CFA3) Suppose the yield to maturity on the bond in Problem 29 increases by .25 percent. What is the new price of the bond using duration? What is the new price of the bond using the bond pricing formula? What if the yield to maturity increases by 1 percent?
By 2 percent? By 5 percent? What does this tell you about using duration to estimate bond price changes for large interest rate changes?
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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