Question
A bond has 2 year to maturity, 6% coupon, 8% yield and pays annually. The current price of the bond is $964.3347. If yield increases
A bond has 2 year to maturity, 6% coupon, 8% yield and pays annually. The current price of the bond is $964.3347. If yield increases by 25 basis points, calculate the new bond price using the duration model.
958.13
970.53
955.67
960.00
None of the above
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
