A 5%, 10-year bond has a yield to maturity of 3.75% and modified duration of 6.2 years.

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A 5%, 10-year bond has a yield to maturity of 3.75% and modified duration of 6.2 years. If the market is expected to increase by 125 basis points, what do you estimate will be the percent change (minus if negative) in the bond's price?

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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Posted Date: Apr 22, 2024 05:18 AM

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A 5%, 10-year bond has a yield to maturity of 3.75% and modified duration of 6.2 years.

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To estimate the percentage change in the bonds price we can use the modifi... View the full answer

Investment Analysis and Portfolio Management

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