Question
A bond with maturity of 20 years has a YTM of 9.5% is priced at $793. Its duration ( not modified duration) is 15.5 years.
A bond with maturity of 20 years has a YTM of 9.5% is priced at $793. Its duration (not modified duration) is 15.5 years. What will happen to the bond price if the bonds YTM falls to 8.5%?
A bond with maturity of 20 years has a YTM of 9.5% is priced at $793. Its duration (not modified duration) is 15.5 years. What will happen to the bond price if the bonds YTM falls to 8.5%?
Rise by approximately 14%
Fall by approximately 14%
Fall by approximately 17%
Rise by approximately 17%
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Financial Markets And Institutions
Authors: Jeff Madura
13th Edition
0357130790, 978-0357130797
