C If interest rates were to decrease by 25 basis points, (i) what percentage change in...
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C If interest rates were to decrease by 25 basis points, (i) what percentage change in price would you expect for the bond? (ii) Find the new price using the duration method. (5 points) If the change in interest rates were 10 basis points, would the pricing error using the duration method be greater/less than the direct method of pricing? Briefly explain C If interest rates were to decrease by 25 basis points, (i) what percentage change in price would you expect for the bond? (ii) Find the new price using the duration method. (5 points) If the change in interest rates were 10 basis points, would the pricing error using the duration method be greater/less than the direct method of pricing? Briefly explain
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Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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