Canadian bond to change in value

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Reference no: EM131989945

Assume that a U.S. bond investor has invested in Canadian government bonds. The duration of a 12-year Canadian government bond is 8.40, and the Canadian country beta is 0.63. Interest rates in the United States are expected to change by approximately 80 bps.

How much can the U.S. investor expect the Canadian bond to change in value if U.S. rates change by 80 bps?

Reference no: EM131989945

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