Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A bond has a Macaulay's duration of 19.16 years. Current interest rates are 9.91%. If rates fall by 0.29%, according to duration what will be

A bond has a Macaulay's duration of 19.16 years. Current interest rates are 9.91%. If rates fall by 0.29%, according to duration what will be the approximate percentage change in the bond's price? Assume annual compounding. Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions