Solved

Consider a Bond with a Duration of 6 Years Having

Question 50

Multiple Choice

Consider a bond with a duration of 6 years having a yield to maturity of 8% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?


A) 2.88%
B) 3.45%
C) -3.89%
D) -3.45%
E) -2.88%

Correct Answer:

verifed

Verified

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

Related Questions

Q10: If the price before yields changed was

Q18: The longer the time to maturity, the

Q29: Which of the following is <b>not</b> a

Q43: A 15-year bond has a $1,000 par

Q44: Which of the following is <b>not</b> a

Q47: An interest rate is the price of

Q48: Suppose you have a 10%,20 year bond

Q81: Which duration is computed by discounting flows

Q85: Exhibit 18.3<br>Use the Information Below for the

Q90: The yield to call is a more