Consider a discount bond with a principal payment of $1,000 in 7 years and a price of $963. Assume that the yield curve is a flat 12%. What's the dollar price change if the actual change in interest rate is 0.2% using only duration? A -$12.04 B) -$13.04 $14.04 -$15.04 E) -$16.04
Consider a discount bond with a principal payment of $1,000 in 7 years and a price of $963. Assume that the yield curve is a flat 12%. What's the dollar price change if the actual change in interest rate is 0.2% using only duration? A -$12.04 B) -$13.04 $14.04 -$15.04 E) -$16.04
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6DTM
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