# Suppose the price of a 10-year zero is $50 and the cash flow of $90 at the

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## Question:

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?

**Related Book For**

## Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi