Question
A $1,000 par value bond has a Macaulay's duration of 10.03 years. The bond's current yield to maturity is 9.1%. If the bond's yield to
A $1,000 par value bond has a Macaulay's duration of 10.03 years. The bond's current yield to maturity is 9.1%. If the bond's yield to maturity decreases by 0.3%, what is the approximate change in the bond's price based on duration? Assume annual compounding. Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%).
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Financial Management For Decision Makers
Authors: Peter Atrill
9th Edition
1292311436, 978-1292311432
