Question
Consider a 9.60 percent coupon bond with nine years to maturity and a current price of $965.40. Suppose the yield on the bond suddenly increases
Consider a 9.60 percent coupon bond with nine years to maturity and a current price of $965.40. Suppose the yield on the bond suddenly increases by 2 percent.
Use duration to estimate the new price of the bond. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Calculate the new bond price. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Millon Cornett
1st International Edition
0071181334, 9780071181334
