A 6 percent coupon bond paying interest semiannually has a modified duration of 10 years, sells for
Question:
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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The predicted change in price for the bond with the given information is a 7656 Heres ...View the full answer
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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