Please correct answer and don't used hand raiting and don't used Ai solution A bond has a modified duration of 4.90. The yield to maturity on this bond is expected to decrease by 110 basis points. The percentage change in bond price is closest to:-5.39%.+4.41%.+5.39%.-4.41%.

The question requires the determination of the percentage change in bond price due to a change in…

Answered: A bond has a modified duration of 4.90.…

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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Similar questions

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A bond has a modified duration of 4.90. The yield to maturity on this bond is expected to decrease by 110 basis points. The percentage change in bond price is closest to: -5.39%. +4.41%. +5.39%. -4.41%.