CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

What is the duration estimate of the dollar price change for a 10%, 20-year bond with a modified duration of 9.969, selling at 132.03, when the yield changes by one basis point?
A. 0.09969
B. 0.1316
C. 9.969
Explanation: Approximate percentage price change = 9.969(.0001)(100) = .09969%
Approximate dollar price change =.09969%(132.03) = $0.1316

User Contributed Comments 1

User Comment
Ebenezer Take note of the difference between the dollar price change and percentage price change.
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