Question
A 15-year zero coupon bond has a face value of $1,000. The current 15 year spot rate is 8%. Using the bond's modified duration, what
A 15-year zero coupon bond has a face value of $1,000. The current 15 year spot rate is 8%. Using the bond's modified duration, what is the percentage change in the price of the bond if interest rates rise by 50 basis points?
Select one:
a. -6.94%
b. 6.94%
c. 4.69%
d. -4.69%
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