Question
You own a bond that has a duration of 5 years. Interest rates are currently 6%, but you believe the Fed is about to increase
You own a bond that has a duration of 5 years. Interest rates are currently 6%, but you believe the Fed is about to increase interest rates by 30 basis points. Your predicted price change on this bond is ________. (Select the closest answer.)
+1.42%
1.42%
4.72%
+4.72%
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Principles Of Managerial Finance
Authors: Chad J. Zutter, Scott Smart
16th Edition
0136945880, 978-0136945888
