Question
The price of a corporate bond changes one day from 92.56 to 95.35 per 100 of par value. The modified duration for the bond is
The price of a corporate bond changes one day from 92.56 to 95.35 per 100 of par value. The modified duration for the bond is 8.53 in years. What is the estimated change in this bond's yield?
Express your answer in basis points, and round to two decimal places. If the answer is a decrease in yield, then include the negative in your answer.
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
