Question
Right after the FOCM meeting concluded on September 22, 2021, 10-year US Treasury rated increased 20 bps to 1.50%. Suppose that you are long (you
Right after the FOCM meeting concluded on September 22, 2021, 10-year US Treasury rated increased 20 bps to 1.50%. Suppose that you are long (you bought) the US Treasury 10-year, which currently has a modified duration of 9 years. If you think that the yield to maturity on the US T 10 year will rise another 50 bps to 2.00%, then your ____________ on the bond position will be _________________.
| a. | gain, 4.5% | |
| b. | gain; 45 bps | |
| c. | loss; 4.5% | |
| d. | loss, 45 bps |
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
