You own a bond portfolio worth $153,000. You estimate that your portfolio has an average YTM of 4.2% and a Modified Duration of 22.7 years. If your portfolio's average YTM were to increase by 16 basis points overnight, what would be the approximate new value of your portfolio? Round to the nearest dollar.
You own a bond portfolio worth $153,000. You estimate that your portfolio has an average YTM of 4.2% and a Modified Duration of 22.7 years. If your portfolio's average YTM were to increase by 16 basis points overnight, what would be the approximate new value of your portfolio? Round to the nearest dollar.
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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