Question
If a bond has a modified duration of 5.2, what is the expected return if interest rates rise by 40 bps? Your answer should be
| If a bond has a modified duration of 5.2, what is the expected return if interest rates rise by 40 bps? Your answer should be in percentage terms and with the appropriate sign. For example, +7.2 is a positive 7.2 percent and -8.4 is a loss of 8.4%. |
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
