微信扫一扫
实时资讯全掌握
The price of a bond is equal to $101.76 if the term structure of interest rates is flat at 5%. The following bond prices are given for up and down shifts of the term structure of interest rates. Using the following information what is the approximate percentage price change of the bond using effective duration and assuming interest rates decrease by 0.5%?
Bond price: $98.46 if term structure of interest rates is flat at 6% A. 1.74%. B. 0.174%. C. 0.0087%. |