A 9-year bond has a yield of 10.5% and a duration of 7.356 years. If the...

Question

Question

A 9-year bond has a yield of 10.5% and a duration of 7.356 years. If the market yield changes by 40 basis points, what is the

Answer 1

Answer #1

Solution: -2.66% percentage change in bond price= -(Duration)*change in yield/(1+yield) -7.356*0.4%/(1+0.105)

Answer 2

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