CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

An analyst determined that if interest rates increase 120 basis points the price of a bond would be $89.70, but if interest rates decrease 120 basis points the price of that bond would be $99.30. If the initial price of the bond is $95.40, the approximate percentage price change for a 100 basis point change in yield is closest to:
A. 2.5%
B. 4.2%
C. 8.4%
Explanation: (99.3 - 89.7)/(2 x 95.4 x 0.012) = 4.2%

User Contributed Comments 2

User Comment
ashish100 wtf.. just f'king say duration..
ashish100 jk
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