Consider an American bond with an effective duration (which is pretty much the same as modified duration, but more precise) of 6.76 years having a yield to maturity of 7% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?© BrainMass Inc. brainmass.com March 21, 2019, 9:52 pm ad1c9bdddf
The change in price is calculated as
approximate percentage ...
The expert examines bond percentage change for American Bonds.