Question
A bond with a 9-year modified duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.84%,
A bond with a 9-year modified duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.84%, you would predict that the new value of the bond will be approximately _________.
A.
$1,075.25
B.
$1,085.75
C
$1,094.40
D.
$1,095.50
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
