There is a 4-year, 3 percent coupon bond with 3.5 years Duration. If the market interest rate increases 15 basis points from 9 to 9.15 percent, what is the percentage change in the value of the bond? Show your work and formulas.
There is a 4-year, 3 percent coupon bond with 3.5 years Duration. If the market interest rate increases 15 basis points from 9 to 9.15 percent, what is the percentage change in the value of the bond? Show your work and formulas.
Chapter16: Interest, Rent, And Profit
Section: Chapter Questions
Problem 1WNG
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