A bond with maturity of 20 years has a YTM of 9 5 is priced at $793 Its duration ( not modified duration) is 15 5 years What will happen to the bond price if the bond rsquo s YTM falls to 8 5 Fall by approximately 17 Fall by approximately 14 Rise by approximately 14 Rise by approximately 17 ...

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A bond with maturity of 20 years has a YTM of 9.5% is priced at $793. Its

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A bond with maturity of 20 years has a YTM of 9.5% is priced at $793. Its duration (not modified duration) is 15.5 years. What will happen to the bond price if the bond’s YTM falls to 8.5%?

Fall by approximately 17%

Fall by approximately 14%

Rise by approximately 14%

Rise by approximately 17%

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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: Dec 21, 2022 02:21 AM

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A bond with maturity of 20 years has a YTM of 9.5% is priced at $793. Its

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Investment Analysis and Portfolio Management

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