Consider a 25-year 6% bond selling at $70.357 with a par value of $100 to yield...

   

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Consider a 25-year 6% bond selling at $70.357 with a par value of $100 to yield 9%. Using duration, estimate the percentage price change given a 200-basis-point drop in yield. What is the absolute estimation error relative to the actual percentage price change? Consider a 25-year 6% bond selling at $70.357 with a par value of $100 to yield 9%. Using duration, estimate the percentage price change given a 200-basis-point drop in yield. What is the absolute estimation error relative to the actual percentage price change?

Answer rating: 100% (QA)

Absolutely lets estimate the percentage price change and error using the provided information Bond Details Price P 70357 Coupon C 6 of 100 par value u... View the full answer