A straight bond is priced at par of $100 and yields 5.0%. If it has a modified
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Question:
A straight bond is priced at par of $100 and yields 5.0%. If it has a modified duration of 3.5, then the price change in response to a 50-bps increase in yield will be:
A .An increase in price of $1.67
B. A decrease in price greater than $1.75
C. A decrease in price of $1.75
D. An increase in price of $1.75
Related Book For
Essentials of Investments
ISBN: 978-0077835422
10th edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
Posted Date: