Us bank has determined that its bond portfolio has a


US Bank has determined that its bond portfolio has a duration of 9.5 years and a prevailing yield to maturity of 4.0 percent. If the yield to maturity changes to 5.5 percent, then US Bank should anticipate how much of a price change for its portfolio? Hint: First find the modified duration of the portfolio.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Us bank has determined that its bond portfolio has a
Reference No:- TGS02933350

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)