Question
A bond with a coupon of 11.5% and 10 years remaining until maturity has a modified duration of 6.48 and convexity of 63. The bond
A bond with a coupon of 11.5% and 10 years remaining until maturity has a modified duration of 6.48 and convexity of 63. The bond is quoted at $115.75. If the required yield rises by 145 basis points, determine the predicted price of the bond. Please show work!
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
