Question
You own a bond that has a duration of 7 years. Interest rates are currently 8%, but you believe the Fed is about to increase
| You own a bond that has a duration of 7 years. Interest rates are currently 8%, but you believe the Fed is about to increase interest rates by 20 basis points. Your predicted price change on this bond is ________. (Select the closest answer.) |
6.48%
+6.48%
+1.30%
1.30%
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
