Question
A bond has a duration of 9 years, and its yield to maturity is 8%. This bond sells at $1,080. If the yield to maturity
A bond has a duration of 9 years, and its yield to maturity is 8%. This bond sells at $1,080. If the yield to maturity falls to 7.52%, the new value of the bond will be approximately ________.
a. $1,035
b. $1,036
c. $1,094
d. $1,123
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
