Question
You have a bond with 30 yrs to maturity, 8% coupon rate (annual coupons), and 9% YTM. Its priced at $897.26, and has duration of
You have a bond with 30 yrs to maturity, 8% coupon rate (annual coupons), and 9% YTM. Its priced at $897.26, and has duration of 11.37 yrs. What is the dollar amount of price change based on modified duration if the YTM increases to 9.1%?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
HBR Guide To Finance Basics For Managers
Authors: Harvard Business Review
1st Edition
1422187306, 978-1422187302
