Question
. An investor has a 15-year maturity, 8% coupon, 8% yield bond with a duration of 10 years and a convexity of 135.5. If the
. An investor has a 15-year maturity, 8% coupon, 8% yield bond with a duration of 10 years and a convexity of 135.5. If the interest rate were to fall 75 basis points, what is your predicted new price for the bond (including convexity)?
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
