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

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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