Suppose the price of a 10-year zero is $50 and the cash flow of $90 at the end of year 10. Suppose the yield to maturity increases by 0.8% the next second. Using the duration concept only (not the actual method), what is the change in the price of the 10-year zero?

Answer rating: 100% (QA)

To estimate the change in the price of a 10year zerocoupon bond when the yield to maturity YTM incre... View the full answer