CFA Practice Question

There are 266 practice questions for this study session.

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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