Question
A bond with maturity of 30 years has a YTM of 9.5% is priced at $895. Its duration ( not modified duration) is 26.5 years.
A bond with maturity of 30 years has a YTM of 9.5% is priced at $895. Its duration (not modified duration) is 26.5 years. What will happen to the bond price if the bonds YTM increases to 10.5%?
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance, Roberts Brooks
8th Edition
0324601212, 9780324601213
