Question
You own a zero-coupon bond with 6 years to maturity. If the level of required yield, which is currently at 5%, goes down by 0.50%,
You own a zero-coupon bond with 6 years to maturity. If the level of required yield, which is currently at 5%, goes down by 0.50%, how much do you expect the price of the asset to change (in percentage terms)?
| A. | 0.463%
| |
| B. | 2.857% | |
| C. | 2.381% | |
| D. | 3.561% | |
| E. | 3.000% |
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Personal Finance For Canadians
Authors: Elliot Currie, Thomas Chambers, Kathleen Brown
9th Edition
0132286750, 978-0132286756
