Adequate Information: In this situation, Nine year bond possesses duration of the 7.194 years and yield of 10%. If there is a change in the yield of bond by 50 basis points To calculate: Percentage change in the price of the bond Introduction: Bond refers to the debt instrument pertaining to which loan is provided by the investor to the governmental or corporate entity for a definite time period at a fixed or variable rate of interest.

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Chapter 16, Problem 3PS

Summary Introduction

Adequate Information:

In this situation, Nine year bond possesses duration of the 7.194 years and yield of 10%. If there is a change in the yield of bond by 50 basis points

To calculate:

Percentage change in the price of the bond

Introduction:

Bond refers to the debt instrument pertaining to which loan is provided by the investor to the governmental or corporate entity for a definite time period at a fixed or variable rate of interest.

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