Question
Example: A bond fund is worth PHP 200MM and its duration is 5. Interest rate went up by 100 basis points. What will happen to
Example: A bond fund is worth PHP 200MM and its duration is 5. Interest rate went up by 100 basis points.
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What will happen to the value of the fund?
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By how much will it decrease (in percentage)?
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By How much will it decrease in Peso terms?
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How much is the value of the fund given the 100 bps increase in interest rates
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Assume that interest rates went down instead by 50 bps, what should be the value of the fund?
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Forensic And Investigative Accounting
Authors: Professor D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith
8th Edition
0808046241, 9780808046240
