Question
An eight-year bond has a yield of 9% and a duration of 7.214 years. If the bond's yield increases by 50 basis points, what is
An eight-year bond has a yield of 9% and a duration of 7.214 years. If the bond's yield increases by 50 basis points, what is the percentage change in the bond's price as predicted by the duration formula?
The bond's price decreased by =?%
please show work
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Public Finance In Theory And Practice
Authors: Holley Ulbrich
1st Edition
0324016603, 978-0324016604
