Consider a bond with a duration of 11.4 years. If the yield-to-maturity of the bonds falls...
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Consider a bond with a duration of 11.4 years. If the yield-to-maturity of the bonds falls from 14.0% to 13.0%, what will be the percentage change in the price of the bond? Assume annual payments. Enter the answer in percentage points; for example, if the answer is 5.25%, enter 5.25 rather than .0525. Consider a bond with a duration of 11.4 years. If the yield-to-maturity of the bonds falls from 14.0% to 13.0%, what will be the percentage change in the price of the bond? Assume annual payments. Enter the answer in percentage points; for example, if the answer is 5.25%, enter 5.25 rather than .0525.
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The percentage change in the price of a bond due to a change in yieldtomaturity can be estimat... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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