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The ten year Treasury traded at 4.18% yesterday but Fed speeches drove the rate up to 4.28% today. A corporate bond with the same maturity
The ten year Treasury traded at 4.18% yesterday but Fed speeches drove the rate up to 4.28% today. A corporate bond with the same maturity traded at a spread of 1.48% yesterday but today the spread is 2.12%. If the corporate bond has a modified duration of 8.48 years, what was the percentage drop in the corporate bond's price? (write the number as 10.52 if your answer is 10.52%)
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