Question
An analyst determines the following information about a semiannual coupon bond: Par value $1,000 Modified duration 10 Current price $800 Yield to maturity (YTM) 8%
An analyst determines the following information about a semiannual coupon bond:
Par value $1,000 Modified duration 10 Current price $800 Yield to maturity (YTM) 8%
If the YTM increases to 9 percent, the predicted change in price, using the modified duration concept, is closest to __________.
| A. -$80.00 |
| D. +$10.00 |
| B. +$80.00 |
| C. -$10.00 |
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The Handbook Of Financing Growth
Authors: Kenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser, D. L. Williams
2nd Edition
0470390158, 978-0470390153
