The bank invested portfolio owns a bond with a 15 year


The bank invested portfolio owns a bond with a 15 year maturity, coupon of 5% semianually, paid a price of $1,075 for the bond. What is tthe YTM on this bond? if interest rates rise 100 basis points what will the new price on the bond be? What is the approximate duration on this bond?

A. 4.42%, 1,075,12

B. 4.42%,971,10

C. 2.21, 1,000, 9

D. 5, 591, 35

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Financial Management: The bank invested portfolio owns a bond with a 15 year
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