Question
30-year bonds with an annual interest rate of 8 per cent are sold at 9%YTM. Current price is $897.26, and Macaulay's lifespan is 11.37 years.
30-year bonds with an annual interest rate of 8 per cent are sold at 9%YTM. Current price is $897.26, and Macaulay's lifespan is 11.37 years.
Based on the Macaulay duration, estimate the percentage change in bond prices if YTM falls to 8.8%.
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
