Question
Assume that a 7 percent, 8year bond has a Macaulay duration of 5.6 years and a YTM of 6.5 percent. Calculate the approximate price change
Assume that a 7 percent, 8year bond has a Macaulay duration of 5.6 years and a YTM of 6.5 percent. Calculate the approximate price change for this bond if interest rates decline 110 basis points.
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
