Question
Consider a bond with a duration of 6 years having a yield to maturity of 8 percent, and interest rates are expected to rise by
Consider a bond with a duration of 6 years having a yield to maturity of 8 percent, and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?
| a. | 3.89 percent | |
| b. | 3.45 percent | |
| c. | 2.88 percent | |
| d. | 2.88 percent | |
| e. | 3.45 percent |
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Personal Finance
Authors: E Thomas Garman, Raymond Forgue
11th Edition
1111531013, 9781111531010
