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Question 19 4 pts You own a bond that has a (Macaulay) duration of 6 years. Interest rates are currently 7%, but you believe the
Question 19 4 pts You own a bond that has a (Macaulay) duration of 6 years. Interest rates are currently 7%, but you believe the interest rates will increase by 25 basis points. Using the duration rule, you predict the percentage price change on this bond is 0 -1.4% O +1.5% O -1.5% O +1.4%
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
