Answered: Estimate the price impact of a 50-basis…

Estimate the price impact of a 50-basis point interest rate change using a linear approximation of a 10-year 7% semi-annual coupon bond priced at 97.50. a. 1.72 b. 3.40 C. 3.44 d. 6.80 e. 6.08

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Estimate the price impact of a 50-basis point interest rate change using a linear approximation of a 10-year
7% semi-annual coupon bond priced at 97.50.
a. 1.72
b. 3.40
C. 3.44
d. 6.80
e. 6.88

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