Question
You have a 25-year maturity, 10% coupon, 10% yield bond with a duration of 10 years and a convexity of 135.5. If the interest rate
You have a 25-year maturity, 10% coupon, 10% yield bond with a duration of 10 years and a convexity of 135.5. If the interest rate were to increase 105 basis points, what is your predicted new price for the bond (including convexity)?
| A. | $896.95 | |
| B. | $1,124.22 | |
| C. | $797.63 | |
| D. | $1,072.78 | |
| E. | $912.01 |
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
9780073526706
