Homework Answers
Percentage decrease in Price of Bond
=(1025-1050)/1050=-2.3810%
Percentage change in price =-duration*Change in YTM
-2.3810% =-Duration*0.25%
Duration =2.3810%/0.25% =9.52 years
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> The way to get the answer is correct; the answer is just not to the full extent. it is 9.5240 years.
Robin Tez Wed, Dec 8, 2021 5:37 PM