- CFA Exams
- CFA Level I Exam
- Study Session 15. Fixed Income (2)
- Reading 46. Understanding Fixed-Income Risk and Return
- Subject 3. Properties of Bond Duration

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**CFA Practice Question**

A 10 year, 8% coupon bond has a price of 97.21 of 100 par. If its effective duration is 4.9 and the yields increase by 0.35%, what is the approximate percentage price change for this bond?

A. -1.72%

B. 1.72%

C. 4.9%

**Explanation:**%ΔP = D Δr = -4.9 * 0.0035 = -1.72%

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