Suppose a bond has a modified duration of 4. By approximately how much will the bonds value

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Suppose a bond has a modified duration of 4. By approximately how much will the bond’s value change if interest rates

a. increase by 50 basis points

b. decrease by 150 basis points

c. increase by 10 basis points

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Introduction To Fixed Income Analytics

ISBN: 9780470572139

2nd Edition

Authors: Steven V. Mann, Frank J. Fabozzi

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Question Posted: Apr 30, 2024 01:02 AM

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Suppose a bond has a modified duration of 4. By approximately how much will the bonds value

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To estimate the approximate change in the bonds value we can use the formula Approximate Perce...View the full answer

Introduction To Fixed Income Analytics

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