Question
If a bond has a Macaulay duration of 5 years, and a YTM of 3%, then a 0.6% increase in market interest rates will _______.
If a bond has a Macaulay duration of 5 years, and a YTM of 3%, then a 0.6% increase in market interest rates will _______. Assume interest is compounded annually.
Question 13 options:
|
Reduce the bonds price by about 2.91%
| |
| Reduce the bonds price by about 2.57% | |
|
Reduce the bonds price by about 3.23%
| |
| Reduce the bonds price by about 3.47% | |
|
Reduce the bonds price by about 3.09% |
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Islamic Theories Of Finance
Authors: Nicolas Aghnides
1st Edition
1593333110, 9781593333119
