Solved

The Formula for Relating the Percentage Change in Price to the Bond

Question 40

Multiple Choice

The formula for relating the percentage change in price to the bond duration is


A) △P/P = [-△i/(1 + i) × D].
B) △P/P = [△i/(1 + i) × D].
C) △P/P = [-△i * (1 + i) ÷ D].
D) △P/P = [-△i/(1 + i) ÷ D].

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions