Question
An eight-year, 3.5% annual coupon bond is priced at 92.1492, with a yield to maturity of 4.7% and a Macaulay duration of 7.0705. If rates
An eight-year, 3.5% annual coupon bond is priced at 92.1492, with a yield to maturity of 4.7% and a Macaulay duration of 7.0705. If rates decrease by 75 bps, the percentage price change of the bond is closest to: [Hint: Calculate the modified duration first] A. - 5.30%. B. 5.07%. C. 5.30%
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De Gruyter Handbook Of Entrepreneurial Finance
Authors: David Lingelbach
1st Edition
3110726750,3110726351
