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Author Question: A bond matures in 30 years, has a 20 year duration and a yield to maturity of 9.32%. The market ... (Read 185 times)

olivia_rose

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Question 1

A bond has a YTM of 6.75%, a modified duration of 14.05 years, a duration of 15 years and a 20 year maturity. By what percentage will the bond's price change if market interest rates decrease by 0.75%?
◦ -0.750 percent
◦ +0.750 percent
◦ +10.53 percent
◦ -10.53 percent

Question 2

A bond matures in 30 years, has a 20 year duration and a yield to maturity of 9.32%.  The market interest rate has increased by 0.47%. The modified duration is
◦ 9.4 years.
◦ 14.1 years.
◦ 18.29 years.
◦ 27.44 years.


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Marked as best answer by olivia_rose on Mar 29, 2022

lactosetheintolerant

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olivia_rose

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Reply 2 on: Mar 29, 2022
Excellent


amynguyen1221

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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