Question
Consider a 10-year bond with current price of $97.6 and a duration of 9 years. Suppose the yield on the bond is 7.6% per year
Consider a 10-year bond with current price of $97.6 and a duration of 9 years. Suppose the yield on the bond is 7.6% per year with continuous compounding. What is the change in the price of the bond if the yield increases by 0.3%?
Class is Advanced Options, Futures & Derivatives. Assignment is due 2/25 by midnight, but I can't seem to solve this problem for the life of me. Please help.
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
