Lydia just purchased a Treasury bond for $104.246 at a yield rate of j=4.89% p.a. The...
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Lydia just purchased a Treasury bond for $104.246 at a yield rate of j₂=4.89% p.a. The duration of Lydia's bond is 2.3005 years. Using the bond price sensitivity formula, calculate the change in price of Lydia's bond that would result from an increase in the yield rate (j₂) of 25 basis points. Round your answer to four decimal places. (The values below are all in dollars.) O a. -0.2858 b. -0.2926 O C. -0.5716 O d. -0.5852 Lydia just purchased a Treasury bond for $104.246 at a yield rate of j₂=4.89% p.a. The duration of Lydia's bond is 2.3005 years. Using the bond price sensitivity formula, calculate the change in price of Lydia's bond that would result from an increase in the yield rate (j₂) of 25 basis points. Round your answer to four decimal places. (The values below are all in dollars.) O a. -0.2858 b. -0.2926 O C. -0.5716 O d. -0.5852
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Related Book For
Essentials of Investments
ISBN: 978-0077835422
10th edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
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