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Example: A bond with maturity of 30 years has a coupon rate of 8% (paid annually) and a yield to maturity of 9 %. Its

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Example: A bond with maturity of 30 years has a coupon rate of 8% (paid annually) and a yield to maturity of 9 %. Its price is $897.26, and its duration is 11.37 years. What will happen to the bond price if the bond's yield to maturity increases to 9.1%2 Steps: Step 1 What is D*? Step : AP -(D Ay) x P

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