Question
Bond's duration is 7.62 and it's YTM is 6. It's current price is $1192.03. Convexity is 123.7. If the price increases by 1.51% the new
Bond's duration is 7.62 and it's YTM is 6. It's current price is $1192.03. Convexity is 123.7. If the price increases by 1.51% the new price (dollar amount) should be ... % Change in Price = - (Maculay Duration* Yield change)/(1+ Periodic YTM) + (0.5*Convexity* Yield change^2)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
