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1. The Duration of a bond is 7. Interest rates increase by 2%. What is the change in value of a the bond? 2. A
1.
| The Duration of a bond is 7. | |||||
| Interest rates increase by 2%. | |||||
| What is the change in value of a the bond? | |||||
2.
| A Zero coupon bond matures in 4 years. | |||||
| Interest rates increase by 2%. | |||||
| What is the change in value of a the bond? | |||||
3. A daily volatility of an interest rate is 1%. Approximately what is the annualized volatilty?
The annual volatility of an interest rate is 16%. Approximately what is the daily volatilty?
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Wealth Habits Six Ordinary Steps To Achieve Extraordinary Financial Freedom
Authors: Candy Valentino
1st Edition
1394152299, 978-1394152292
