A 9-year bond has a yield to maturity of 10 percent and a modified duration of 6.54

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A 9-year bond has a yield to maturity of 10 percent and a modified duration of 6.54 years. If the market yield changes by 50 basis points, what is the change in the bond’s price?

a. 3.27 percent

b. 3.66 percent

c. 6.54 percent

d. 7.21 percent.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Dec 29, 2023 10:03 PM

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A 9-year bond has a yield to maturity of 10 percent and a modified duration of 6.54

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The correct answer is a 327 percent Heres how to calculate the c...View the full answer

Fundamentals Of Investments Valuation And Management

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