Question
Miras portfolio includes a bond with the following characteristics: Current Value $127,325 Average historical return 5% Standard deviation 7% Current YTM 5% Duration 8 years
Mira’s portfolio includes a bond with the following characteristics:
Current Value $127,325
Average historical return 5%
Standard deviation 7%
Current YTM 5%
Duration 8 years
What would the new value be if interest rates increased to 6%? Show your calculation.
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Step: 1
To calculate the new value of Miras bond if interest rates increase to 6 we need to apply the concep...
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
