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Lydia just purchased a Treasury bond for $108.723 at a yield rate of j2=7.68% p.a. The duration of Lydia's bond is 9.4099 years. Using the bond price sensitivity formula, calculate the change in price of Lydia's bond that would result from an increase in the yield rate (j2) of 46 basis points. Round your answer to four decimal places. (The values below are all in dollars.)   a.-2.2661   b.-4.5321   c.-4.3705   d.-2.1852

Lydia just purchased a Treasury bond for $108.723 at a yield rate of j2=7.68% p.a. The duration of Lydia's bond is 9.4099 years. Using the bond price sensitivity formula, calculate the change in price of Lydia's bond that would result from an increase in the yield rate (j2) of 46 basis points. Round your answer to four decimal places. (The values below are all in dollars.)   a.-2.2661   b.-4.5321   c.-4.3705   d.-2.1852

Essentials Of Investments
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
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Lydia just purchased a Treasury bond for $108.723 at a yield rate of j2=7.68% p.a. The duration of Lydia's bond is 9.4099 years. Using the bond price sensitivity formula, calculate the change in price of Lydia's bond that would result from an increase in the yield rate (j2) of 46 basis points. Round your answer to four decimal places.

(The values below are all in dollars.)

 

a.-2.2661

 

b.-4.5321

 

c.-4.3705

 

d.-2.1852

 

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