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Using the following formula dp -1 .pop dR (1+R) *D*P With dP: Change in the Present Value of the bond dR: Change in the Rate

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Using the following formula dp -1 .pop dR (1+R) *D*P With dP: Change in the Present Value of the bond dR: Change in the Rate R: Initial rate D: Duration of the Bond P: Initial Present Value of the Bond Calculate the Change in the Rate of a Bond, if the Price of the bond increases in 12 dP - 12 R = 15% D-6 Years P= 1045

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