Calculate the expected price change if interest rates drop to 6.75% using the duration…


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Calculate the expected price change if interest rates drop to 6.75% using the duration… 1 answer below ยป 1. Consider the bond in the previous question. Calculate the expected price change if interest rates drop to 6.75% using the duration approximation. Calculate the actual price change using discounted cash flow. 2. The duration of a $100 million portfolio is 10 years. $40 million in new securities are added to the portfolio, increasing the duration of the portfolio to 12.5 years. What is the duration of the $40 million in new securities? Jul 08 2014 12:39 PM

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