Question
A 20-year zero coupon bond with a face value of $1,000 is currently selling for $214.55 and has a market rate of interest of 8%.
A 20-year zero coupon bond with a face value of $1,000 is currently selling for $214.55 and has a market rate of interest of 8%. Using the bond's duration, what is the approximate change in the price of the bond if interest rates rise to 9%?
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Financial Management For Nonprofit Organizations Policies And Practices
Authors: Jo Ann Hankin, John Zietlow, Alan Seidner, Tim O'Brien
3rd Edition
1119382564, 9781119382560
