As we saw above, a 2percentagepoint drop in market yields from 10 percent to 8 percent increased
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As we saw above, a 2‐percentage‐point drop in market yields from 10 percent to 8 percent increased the price of the 15‐year bond to $1,172.92, a 17.29 percent change, while the price of the 30‐year bond changed to $1,226.23, a 22.62 percent change. Therefore, although the time to maturity doubled, the percentage change in price was less than double.
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Related Book For
Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
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