A bond has a duration of 6.5 years. Its current market price is $1080. Interest rates in the market are 6% today. It has been forecasted that the interest rates will fall to 5% over the next couple of weeks. How will this bond's price change in percentage terms?

Answer rating: 100% (QA)

To calculate the percentage change in the bonds price due to a change in interest ra... View the full answer