Question
In: Finance
A 5.5% bond with 10 years remaining maturity pays coupons quarterly and a $1,000 par value....
A 5.5% bond with 10 years remaining maturity pays coupons quarterly and a $1,000 par value. The yield to maturity on the bond is 4.7%. What is the estimated price change of the bond using duration and convexity if rates rise by 75 basis points?
Solutions
Expert Solution
The estimated price change of the bond using duration and convexity if rates rise by 75 basis points = -5.81%
Workings:
jeff jeffy answered 2 years agoRelated Solutions
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