Cory's parents recently gave the Dumont's $40,000 to start education funds for Chad and Haley. A stockbroker
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Cory's parents recently gave the Dumont's $40,000 to start education funds for Chad and Haley. A stockbroker has recommended that Cory and Tisha include a 10-year corporate bond in the portfolio. The bond currently yields 8 percent and sells for $1,000. If interest rates increase 2 percentage points and the bond is sold, how much will the bond sell for at that time? Calculate the bond price if rates fall 1 percent. What investing rule does this prove?
Related Book For
Value at Risk The New Benchmark for Managing Financial Risk
ISBN: 978-0071464956
3rd edition
Authors: Philippe Jorion
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