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A nine-year bond has a yield of 15% and a duration of 12.094 years. If the...

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Finance

A nine-year bond has a yield of 15% and a duration of 12.094years. If the bond's yield changes up by 15 basis points, what isthe percentage change in the bond's price? (Negative amountshould be indicated by a minus sign. Round your answer to 2 decimalplaces. Omit the "%" sign in your response.)

  Change in bond's price%

Answer & Explanation Solved by verified expert
4.2 Ratings (588 Votes)
Solution As per the information given in the question The Duration of the bond 12094 years Interest rate Yield 15 The yield and price of a bond are inversely related This relationship is explained by    See Answer
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A nine-year bond has a yield of 15% and a duration of 12.094years. If the bond's yield changes up by 15 basis points, what isthe percentage change in the bond's price? (Negative amountshould be indicated by a minus sign. Round your answer to 2 decimalplaces. Omit the "%" sign in your response.)  Change in bond's price%

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