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A 5%, 10-year bond has a yield to maturity of 3.75% and modified duration of 6.2 years. If the market is expected to increase by
A 5%, 10-year bond has a yield to maturity of 3.75% and modified duration of 6.2 years. If the market is expected to increase by 125 basis points, what do you estimate will be the percent change (minus if negative) in the bond's price?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
