A $1000 par value bond is currently selling at par and has an approximate modified duration of
Fantastic news! We've Found the answer you've been seeking!
Question:
A $1000 par value bond is currently selling at par and has an approximate modified duration of 9. Which one of the following statements regarding the estimated change in the price of the bond is TRUE?
Group of answer choices
If the market yield increases by 1% the bond's price will increase by $90.
If the market yield increases by 1% the bond's price will decrease by $60.
If the market yield increases by 1% the bond's price will decrease by $90.
Related Book For
Posted Date: