Calculating Bond Price Change Using Duration

Easy Fixed Income Valuation Duration And Convexity

A bond has a modified duration of 5 years and a yield to maturity of 4%. If market interest rates increase by 1%, what is the approximate percentage change in the bond's price?

Approximately -5%

Approximately -4%

Approximately -6%

Hint

Submitted7.8K

Correct6.3K

% Correct80%