Solution-Bond new price if interest rates suddenly increased

Bond new price if interest rates suddenly increased

Reference no: EM133113139

A bond has a duration of 7.48 with a yield-to-maturity of 6. The current bond price is $1,130.05. Convexity for this bond is determined to be 116.21. What would be the bond's new price if interest rates suddenly increased by 1.67%? State your answer as a dollar amount with two decimal places.

Reference no: EM133113139

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Bond new price if interest rates suddenly increased

Reference no: EM133113139

Reference no: EM133113139

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