Question
Consider a zero coupon bond with a maturity value of $1,000, a six year maturity and a yield of 4%. Assuming annual compounding, if interest
Consider a zero coupon bond with a maturity value of $1,000, a six year maturity and a yield of 4%. Assuming annual compounding, if interest rates go up by 0.4%, the price of this bond will
A. Decrease by 2.28%
B. Increase by 2.33%
C. Increase by 2.28%
D. Decrease by 2.33%
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International Finance Discussion Papers The Information Content Of High Frequency Data For Estimating Equity Return Models And Forecasting Risk
Authors: United States Federal Reserve Board, Dobrislav P. Dobrev, Pawel J. Szerszen
1st Edition
1288724810, 9781288724819
