A 15-year maturity bond making annual coupon payments with a coupon rate of 7% has duration of 10. 245 years and convexity of 127.99. Training The $1,000 face value bond currently sells at a yield to maturity of 5%. If the market rate drops by 50 basis points, what dollar price change would be predicted by the duration-with- convexity rule? Group of answer choices 60.85 50.39 19.32 58.91
A 15-year maturity bond making annual coupon payments with a coupon rate of 7% has duration of 10. 245 years and convexity of 127.99. Training The $1,000 face value bond currently sells at a yield to maturity of 5%. If the market rate drops by 50 basis points, what dollar price change would be predicted by the duration-with- convexity rule? Group of answer choices 60.85 50.39 19.32 58.91
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 15-year maturity bond making annual coupon payments with a coupon rate of 7% has duration of 10. 245 years and convexity of 127.99.
Training
The $1,000 face value bond currently sells at a yield to maturity of 5%. If the market rate drops by 50 basis points, what dollar price change would be predicted by the duration-with- convexity rule? Group of answer choices 60.85 50.39 19.32 58.91
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