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A nine-year bond has a yield of 15% and a duration of 12.094 years. If the...

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Finance

A nine-year bond has a yield of 15% and a duration of 12.094years. If the bond's yield changes up by 15 basis points, what isthe percentage change in the bond's price? (Negative amountshould be indicated by a minus sign. Round your answer to 2 decimalplaces. Omit the "%" sign in your response.)

  Change in bond's price%

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Solution As per the information given in the question The Duration of the bond 12094 years Interest rate Yield 15 The yield and price of a bond are inversely related This relationship is explained by    See Answer
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A nine-year bond has a yield of 15% and a duration of 12.094years. If the bond's yield changes up by 15 basis points, what isthe percentage change in the bond's price? (Negative amountshould be indicated by a minus sign. Round your answer to 2 decimalplaces. Omit the "%" sign in your response.)  Change in bond's price%

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