Question
Assume yields decline by 0.52% overnight. Your bond is originally priced at $96 has a 4.1y duration and 96 convexity. Using all the information above,
Assume yields decline by 0.52% overnight. Your bond is originally priced at $96 has a 4.1y duration and 96 convexity. Using all the information above, what is the best estimate of the new price of your bond after this decline in yields?
| $99.21 | ||
| $94.25 | ||
| $98.02 | ||
| $98.17 |
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
