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A bond is currently priced at $102. The duration measure for this same bond is 5. If interest rates increase by 1.5%, what will be
A bond is currently priced at $102. The "duration" measure for this same bond is 5. If interest rates increase by 1.5%, what will be the new price of the bond?
A) $94.35
B) $107.50
C) $109.50
D) $109.65
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
