Question
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%).
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International Finance Theory And Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J Melitz,
11th Edition
013451954X, 9780134519548
