Question
Assume that a particular bond with a 9% yield to maturity (based on its riskiness) has a modified duration of 6.24 years. Now assume that
Assume that a particular bond with a 9% yield to maturity (based on its riskiness) has a modified duration of 6.24 years. Now assume that the discount rate for similar bonds rises to 9.75%. Based on the concept of modified duration, this bond's price ought to change by:
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Beer Business Finance
Authors: Kary R Shumway
1st Edition
1090833741, 978-1090833747
