Question

A bond currently has a price of $1,050. The yield on the bond is 6%. If the yield increases 25 basis points, the price of the
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Answer #1

Percentage decrease in Price of Bond =(1030-1050)/1050=-1.9048%
Percentage change in price =-duration*Change in YTM
-1.9048% =-Duration*0.25%
Duration =1.9048%/0.25% =7.62 years

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