You are doing a stress test for Bank Uno. The only asset that Uno has is...

 

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You are doing a stress test for Bank Uno. The only asset that Uno has is $250 million invested in the security that you analyzed in the previous two questions (already valued at the price calculated). If the YTM increases by 1,000 bps, by how much (approximately) do you expect Leas asset to shrink? Note: To answer this question use annual duration Hint: As in a previous question, recall the difference between Duration (D) and Modified Duration (MD). Enter your answer as a (positive) loss in Millions of S, with two decimal places Submit You have used 0 of 2 attempts Save Hide Discussion You are doing a stress test for Bank Uno. The only asset that Uno has is $250 million invested in the security that you analyzed in the previous two questions (already valued at the price calculated). If the YTM increases by 1,000 bps, by how much (approximately) do you expect Leas asset to shrink? Note: To answer this question use annual duration Hint: As in a previous question, recall the difference between Duration (D) and Modified Duration (MD). Enter your answer as a (positive) loss in Millions of S, with two decimal places Submit You have used 0 of 2 attempts Save Hide Discussion

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