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A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5. Suppose its yield to maturity goes down one percentage point (e.g.,
A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5. Suppose its yield to maturity goes down one percentage point (e.g., from 5% to 4%). Which of the following is the most likely to be true? A.The bond price should increase by approximately $2.5. B.The bond price should increase by approximately 14.6%. C. Thebond price should increase by approximately 13.8%. D.The bond price should increase by approximately $13.8. E.The bond price should decrease by approximately $14.6.
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