Consider a bond with a duration of 8 years having a yield to maturity of 8 percent, and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?
A) 3.85 percent
B) 3.45 percent
C) -4.02 percent
D) -3.45 percent
E) -3.85 percent

Question

Quizplus · Accepted Answer

The Answer of Consider a bond with a duration of 8 years having a yield to maturity of 8 percent, and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?
A) 3.85 percent
B) 3.45 percent
C) -4.02 percent
D) -3.45 percent
E) -3.85 percent

Consider a Bond with a Duration of 8 Years Having