A 9 , 16 year annual pay bond has a yield to maturity of 11 and Macaulay duration of 9 25 years If the market yield declines by 32 basis points, answer the following question Will the price of the bond go up or down, given the change in rates Why is the duration of the bond much lower than the mat...

Answer Given that the market yield declines by 32 basis points we can expect the price of the bond to go up This is because when market yields decreas ...

A 9%, 16-year annual pay bond has a yield to maturity of 11% and Macaulay duration...

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A 9%, 16-year annual pay bond has a yield to maturity of 11% and Macaulay duration...

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Answer Given that the market yield declines by 32 basis points we can expect the price of the bond to go up This is because when market yields decreas... View the full answer

Investment Analysis and Portfolio Management

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