Question
You find a bond with 28 years until maturity that has a coupon rate of 6.5 percent and a yield to maturity of 6.1 percent.
You find a bond with 28 years until maturity that has a coupon rate of 6.5 percent and a yield to maturity of 6.1 percent. Suppose the yield to maturity on the bond decreases by 0.25 percent.
What is the estimated price of the bond using duration?
A. $1018.66
B. $1087.00
C. $1019.52
D. $1088.10
E. $1089.00
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-0077283292
