What is the approximate duration of ten-year

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What is the approximate duration of a 10-year, 7% coupon bond with annual coupons, a par value of $1,000 and a yield of 4%. a. 8 b. 9 c. 10 d. 11 e. None of the above

If a bond portfolio manager expects interest rates to fall, she will _______ the duration of her bond portfolio. a. shorten b. maintain c. increase d. none of the above

Assume a 15-year zero has a yield of 4% and a par value of $1000. What is this bond’s approximate price? a. $540 b. $545 c. $550 d. $555 e. none of the above

Assume a 15-year zero has a yield of 5% and a par value of $1000. What is this bond’s approximate price? a. $481 b. $491 c. $501 d. $511 e. none of the above

Assume a 15-year zero has a yield of 4% and a par value of $1000. Using duration, what is the new bond’s approximate price if interest rates rise by 1%? a. $472 b. $482 c. $492 d. $502 e. none of the above.

Reference no: EM131891484

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