What should be the approximate price increase for that bond


If the Modified Duration of a bond is 5.6 and the approximate convexity is 125, what should be the approximate price drop for that bond in percentage for a 50bp increase in YTM? What should be the approximate price increase for that bond in percentage for a 50bp decrease in YTM?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What should be the approximate price increase for that bond
Reference No:- TGS02317380

Expected delivery within 24 Hours