A bond has a Macaulay duration of 6.87 years. What will be the percentage change in the bond price if the yield-to-maturity increases from 8% to 8.5%?
A) -2.94%
B) -3.65%
C) -3.93%
D) -4.32%
E) -3.30%
Correct Answer:
Verified
Q97: Jefferson-Smith bonds are quoted at a price
Q106: Explain how to immunize a dedicated portfolio.
Q107: You own a 7%, semiannual coupon bond
Q108: A bond has Macaulay duration of 8.65
Q110: A bond has a modified duration of
Q112: A $1,000 par value bond with a
Q113: What are the five bond pricing theorems
Q114: Explain current yield, coupon rate, yield to
Q115: A bond has a Macaulay duration of
Q116: A bond has a dollar value of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents