Question
You own a bond portfolio worth $393,353. The bonds have a weighted average duration of 16.5 years. If market rates rise by 35 basis points,
You own a bond portfolio worth $393,353. The bonds have a weighted average duration of 16.5 years.
If market rates rise by 35 basis points, by how much would the bond portfolio be expected to change in value? Be sure to include the correct sign and enter your result rounded to the nearest integer.
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To calculate the change in the value of the bond portfolio due to a change in int...
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Financial Institutions, Markets And Money
Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias
12th Edition
1119386489, 1119386483, 978-1-119-3303, 978-1119330363
