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Q19 (4 pts) Using duration to approximate the effect of an interest rate change, estimate the percent change in the bond's price if yields increase
Q19 (4 pts) Using duration to approximate the effect of an interest rate change, estimate the percent change in the bond's price if yields increase from 0% to 10%. A. The bond's price will decrease by 16.7% B. The bond's price will increase by 17.5%. C. The bond's price will decrease by 17.5% D. The bond's price will increase by 19.2% E. The bond's price will decrease by 19.2% Q19 (4 pts) Using duration to approximate the effect of an interest rate change, estimate the percent change in the bond's price if yields increase from 0% to 10%. A. The bond's price will decrease by 16.7% B. The bond's price will increase by 17.5%. C. The bond's price will decrease by 17.5% D. The bond's price will increase by 19.2% E. The bond's price will decrease by 19.2%
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