Question
What is the approximate percent change in value of your portfolio if all (annual) interest rates go down by two percentage points? What is the
What is the approximate percent change in value of your portfolio if all (annual) interest rates go down by two percentage points?
What is the approximate change in dollar value of your portfolio if all (annual) interest rates go down by two percentage points? Your portfolio consists of one of each bond
Bond A: Coupon rate = 10%, Maturity = 2, Price = 109.40, Duration = 1.82, Convexity = 4.34
Bond B: Coupon rate = 5%, Maturity = 5, Price = 100, Duration = 4.38, Convexity = 22.61
Bond C: Coupon rate = 3%, Maturity = 10, Price = 84.81, Duration = 8.36, Convexity = 81.24
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