You own a fixed-income asset with a duration of five years. If the level of interest rates,

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You own a fixed-income asset with a duration of five years. If the level of interest rates, which is currently 8%, goes down by 10 basis points, how much do you expect the price of the asset to go up (in percentage terms)?

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Essentials of Investments

ISBN: 978-0077835422

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Nov 30, 2017 10:10 AM

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You own a fixed-income asset with a duration of five years. If the level of interest rates,

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Using Equation 112 the per...View the full answer

Essentials of Investments

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