The modified duration of a bond portfolio worth $1 million is 5 years.By approximately how much does the value of the portfolio change if all yields increase by 5 basis points?
A) Increase of $2,500
B) Decrease of $2,500
C) Increase of $25,000
D) Decrease of $25,000
Correct Answer:
Verified
Q2: Which of following describes forward rates?
A) Interest
Q3: A company invests $1,000 in a five-year
Q4: The six month and one-year rates are
Q5: The two-year zero rate is 6% and
Q6: Which of the following is NOT a
Q7: The compounding frequency for an interest rate
Q8: Bootstrapping involves
A) Calculating the yield on a
Q9: Under liquidity preference theory,which of the following
Q10: Which of the following is true?
A) When
Q11: The zero curve is upward sloping.Define X
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