A corporate bond with annual coupons has a duration of 4.2 years and a yield to maturity

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A corporate bond with annual coupons has a duration of 4.2 years and a yield to maturity of 4%.

Using the duration approximation, what would be the percentage change in the bond's price (?P/P) if yields increase by 30 basis points? Enter your answer as a decimal number, not a percentage.

Related Book For answer-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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Posted Date: Feb 24, 2024 01:32 AM

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A corporate bond with annual coupons has a duration of 4.2 years and a yield to maturity

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The duration approximation formula for the percentage cha... View the full answer

Contemporary Business Mathematics with Canadian Applications

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