An annual payment bond has a 6 percent required return. Interest rates are projected to rise...

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An annual payment bond has a 6 percent required return. Interest rates are projected to rise 25 basis points (or 0.25 percent). The bond's duration is 15 years. What is the predicted price change? An annual payment bond has a 6 percent required return. Interest rates are projected to rise 25 basis points (or 0.25 percent). The bond's duration is 15 years. What is the predicted price change?

Answer rating: 100% (QA)

To calculate the predicted price change of the bond due to a change in interest rates we can use ... View the full answer