A bond with a par value of $1,000 has a duration of 6.2. If the yield on

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A bond with a par value of $1,000 has a duration of 6.2. If the yield on the bond is expected to change from 8.80% to 8.95%, the estimated new price for the bond following the expected change in yield is best described as being

a. 0.93% lower than the bond’s current price.

b. 1.70% lower than the bond’s current price.

c. 10.57% lower than the bond’s current price.

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Fundamentals Of Investing

ISBN: 9781292153988

13th Global Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Apr 04, 2024 03:32 AM

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A bond with a par value of $1,000 has a duration of 6.2. If the yield on

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Fundamentals Of Investing

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