Ytm on beka company bonds is 7 yield changes to 10 ytm on


Question

YTM on Beka Company bonds is 7%. Yield changes to 10%. YTM on Ashley Corp bonds is 6%. Yield changes to 10%.

If you use (modified) duration to calculate the bond price after the yield change occurs, which of the above will be further "off" from the actual bond price? Why?

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Financial Management: Ytm on beka company bonds is 7 yield changes to 10 ytm on
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