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Company ABC has a semiannual corporate bond with 8% coupon rate, 5 years maturity and 10% bond yield. You have estimated the Macaulay duration of
Company ABC has a semiannual corporate bond with 8% coupon rate, 5 years maturity and 10% bond yield. You have estimated the Macaulay duration of the bond is 4.18 years. If yield to maturity decreases by 20 basis points, what is the percentage change in the bond price? (1 basis point=0.0001) Select one: O a. 0.774% O b. 0.84% O c. Insufficient information to determine O d. 0.76% O e. 0.12%
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