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A bond has a macaulay duration of 842 and is priced to

Question: A bond has a Macaulay duration of 8.42 and is priced to yield 7%. If interest rates go up so that the yield goes to 7.5%, what will be the percentage change in the price of the bond? Now, if the yield on this bond goes down to 6.5%, what will be the bond's percentage change in price? Comment on your findings.

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Accounting Basics: A bond has a macaulay duration of 842 and is priced to

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Accounting Basics: A bond has a macaulay duration of 842 and is priced to

Reference No:- TGS02421800

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