Question
A ten-year bond paying coupons annually has a yield of 11% and a duration of 7.195 years. If the bond's yield changes by 25 basis
A ten-year bond paying coupons annually has a yield of 11% and a duration of 7.195 years. If the bond's yield changes by 25 basis points, what is the percentage change in the bond's price? (Input the value as apositive value. Do not round intermediate calculations.Round your answer to 2 decimal places.)
The Bond's Price: _______% Increase or Decrease.
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
