Question: Question 2 (1 point) Saved Currently a bond is priced at $1000. The bond has duration of 30. If interest rate goes up by 1%,

Question 2 (1 point) Saved Currently a bond is priced at

Question 2 (1 point) Saved Currently a bond is priced at $1000. The bond has duration of 30. If interest rate goes up by 1%, what is the predicted new price of the bond? You would need to use the duration information in your prediction. $700 $745 $1000 $1125 Question 3 (1 point) Saved Currently a bond is priced at $1000. The bond has duration of 30, and convexity of 900. If interest rate goes up by 1%, what is the predicted new price of the bond? Use both duration and convexity in your prediction. $700 $745 $1000 $1125

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