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If a bond's modified duration is 4 and the interest rate goes down by 1% then the price of the bond: decreases by 8% decreases
If a bond's modified duration is 4 and the interest rate goes down by 1% then the price of the bond:
| decreases by 8% | ||
| decreases by 4% | ||
| increases by 8% | ||
| increases by 4% |
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Handbook Of Research Methods And Applications In Empirical Finance
Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk
1st Edition
1782540172, 978-1782540175
