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8. You ran a regression of the yield of KC Company's 10-year bond on the 10-year U.S. Treasury benchmark's yield using month-end data for the
8. You ran a regression of the yield of KC Company's 10-year bond on the 10-year U.S. Treasury benchmark's yield using month-end data for the past year. You found the following result: YieldkC=0.54+1.22YieldTreassary year U.S. Treasury is 7.0 years, and modified duration on the KC bond is 6.93 years. a. Calculate the percentage change in the price of the 10-year U.S. Treasury, assuming a 50-basis-point change in the yield on the 10year U.S. Treasury. b. Calculate the percentage change in the price of the KC bond, using the regression equation above, assuming a 50-basis-point change in the yield on the 10-year U.S. Treasury
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