Question: 1. A bond is 1.5 years from maturity. It has a 5% coupon, pays semiannually, and 4% yield. Suppose interest rates suddenly increase by 30

1. A bond is 1.5 years from maturity. It has a 5% coupon, pays semiannually, and 4% yield. Suppose interest rates suddenly increase

1. A bond is 1.5 years from maturity. It has a 5% coupon, pays semiannually, and 4% yield. Suppose interest rates suddenly increase by 30 basis points. Use the duration model to estimate the percentage change in the bond price. 2. A bond is 1.5 years from maturity. It has a 5% coupon, pays semiannually, and 4% yield. Suppose interest rates suddenly increase by 30 basis points. Use the bond formula to calculate the percentage change in the bond price

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