Miras portfolio includes a bond with the following characteristics: Current Value $127,325 Average historical return 5% Standard
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Question:
Mira’s portfolio includes a bond with the following characteristics:
Current Value $127,325
Average historical return 5%
Standard deviation 7%
Current YTM 5%
Duration 8 years
What would the new value be if interest rates increased to 6%? Show your calculation.
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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