Assume a Three-Year Bond Has a Duration of 4 $\$ 417.24$

Assume a three-year bond has a duration of 4.102 semi-annual compounding periods and a value of $105 991.21.Further,the yield on the bond instantaneously increases from 6.5% to 6.7%.What is the proportional decrease in the bond price?

A) $\$ 417.24$
B) $\$ 421.09$
C) $\$ 437.61$
D) $\$ 499.43$

Correct Answer:

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