A bond has a modified duration of 6 and a convexity of 62.5. What happens to the bond's price if interest rates rise 25 basis points It goes:（）
A: down 1.46%.
B: up 4.00%.
C: up 1.46%.
A: down 1.46%.
B: up 4.00%.
C: up 1.46%.
举一反三
- The duration of a ten - year, 10 percent coupon bond when the interest rate is 10 percent is 6.76 years. What happens to the price of the bond if the interest rate falls to 8 percent?
- The current yield goes up as the price of a bond falls.
- Is an option-free bond’s price sensitivity positively correlated with the: Bond’s coupon rate Level of market interest rates（） A: NO NO B: NO YES C: YES NO
- A five-year bond with a yield of 11% (annually compounded） pays an 8% coupon at the end of each year. What is the bond's modified duration?（ ） A: 3.982 B: 4.256 C: 3.843
- Call provisions will be exercised when interest rates _________ and bond values _________. A: rise; rise B: fall; rise C: rise; fall D: fall; fall