Question
A bond's Macauley duration is 7, its YTM=2%, and its semi-annual coupon rate = 8%. If you predict that interest rates fall 0.75%, what will
A bond's Macauley duration is 7, its YTM=2%, and its semi-annual coupon rate = 8%. If you predict that interest rates fall 0.75%, what will be the approximate change in the bond's price?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
