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You own a bond portfolio worth $57,000. You estimate that your portfolio has an average YTM of 5.6% and a Modified Duration of 16 years.
You own a bond portfolio worth $57,000. You estimate that your portfolio has an average YTM of 5.6% and a Modified Duration of 16 years. If your portfolio's average YTM were to decrease by 3 basis points, how much would the value of your portfolio change? Round to the nearest cent. [Hint: Answer is positive if the portfolio value increases and negative if the value decreases]
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Mathematics Of Finance
Authors: Robert Brown, Steve Kopp, Petr Zima
8th Edition
0070876460, 978-0070876460
