Question
A bond has a YTM of 7.08% and a modified duration of 15.74 years. Assuming annual compounding, what is the approximate change in the bond's
A bond has a YTM of 7.08% and a modified duration of 15.74 years. Assuming annual compounding, what is the approximate change in the bond's price if market interest rates change by 0.29%? Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%).
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A Study In Public Finance
Authors: A. C. Pigou
1st Edition
1443722766, 978-1443722766
