Question
Assume yields decline by 0.75% overnight. Your bond is originally priced at $104 has a 2.5y duration and 56 convexity. Using all the information above,
Assume yields decline by 0.75% overnight. Your bond is originally priced at $104 has a 2.5y duration and 56 convexity. Using all the information above, what is the best estimate of the new price of your bond after this decline in yields?
| $105.93 | ||
| $103.78 | ||
| $104.95 | ||
| $106.11 |
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Modern Equity Investing Strategies
Authors: Anatoly B Schmidt
1st Edition
9811239495, 978-9811239496
