Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A bond has a market price of 95.000 and a modified duration of 4.5. What is the expected price if the yield increases by 50

A bond has a market price of 95.000 and a modified duration of 4.5. What is the expected price if the yield increases by 50 bps (or 0.50%)? (Answer per 100 of par to the nearest ten thousandth - i.e. 0.0001.)

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

Personal Finance A Practical Approach

Authors: Jane King, Mary Carey

1st Edition

0199668833, 9780199668830

More Books

Students also viewed these Finance questions