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A portfolio manager is considering the effect of a 75 basis point cange of interest rate on a bond with Par = 1000, Price =
A portfolio manager is considering the effect of a 75 basis point cange of interest rate on a bond with Par = 1000, Price = $985 and Duration =4.8. The most appropriate price change would be
| a. | None of the alternatives |
| b. | 4.8% of 1000 |
| c. | 3.6% of 1000 |
| d. | 3.6% of 985 |
| e. | 4.8% of 985 |
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Investments
Authors: Zvi Bodie
12th Edition
1260819426, 9781260819427
