Question: You hold a zero coupon bond when there is a sudden change in interest rates. It has 14 years to maturity. Yield to maturity is

You hold a zero coupon bond when there is a sudden change in interest rates. It has 14 years to maturity. Yield to maturity is 0.065, and rates change by RISING 0.01 overnight. By how much does your bond change in value as a percentage or decimal? (Zero coupon bonds assume semi-annual compounding.) -0.1229 -0.1345 -0.1298 -0.1198 -0.1265

A bond is priced at 1087 and has a YTM of 0.095 when interest rates suddenly change by -20 basis points. The bond's price changes to 1180 Calculate the duration for this bond.

46.8422

44.5001

36.6306

38.7619

42.2985

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