Question
21. You have a 25-year maturity, 10.6% coupon, 10.6% yield bond with a duration of 10 years and a convexity of 136.1. If the interest
21. You have a 25-year maturity, 10.6% coupon, 10.6% yield bond with a duration of 10 years and a convexity of 136.1. If the interest rate were to fall 131 basis points, your predicted new price for the bond (including convexity) is _________.
Multiple Choice
A. $1,130.20
B. $1,118.50
C. $1,090.42
D. $1,106.82
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
