Multiple Choice
A bond has a Macaulay's duration of 26.56 years. If rates rise from 6.25% to 6.50%, the bonds price will:
A) increase by approximately 6.25%.
B) decrease by approximately 6.25%.
C) increase by approximately 6.50%.
D) decrease by approximately 6.50%.
E) Not enough information is given to answer the question.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Use the following bank information for
Q2: A 30-year zero coupon bond with a
Q4: Use the following bank information for
Q5: To perfectly immunize a bank's economic value
Q6: What does a bank's duration gap measure?<br>A)
Q7: A bond has a Macaulay's duration of
Q8: Why is it difficult to estimate the
Q9: Which of the following will not affect
Q10: What are the strengths and weaknesses of
Q11: If the yield curve is inverted, a