A bond with an 8% coupon has a current market price of $950, a duration of 3.5,

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A bond with an 8% coupon has a current market price of $950, a duration of 3.5, and interest rates are currently at 10%. If interest rates decrease 1%, what is the % change in price of the bond?

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Fixed Income Securities Valuation Risk and Risk Management

ISBN: 978-0470109106

1st edition

Authors: Pietro Veronesi

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Posted Date: Mar 14, 2024 10:33 AM

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A bond with an 8% coupon has a current market price of $950, a duration of 3.5,

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To calculate the percentage change in the price of the bond due to a 1 decre... View the full answer

Fixed Income Securities Valuation Risk and Risk Management

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