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Business, 09.11.2019 03:31 jack6563

Suppose you are a bond trader. you read in the wall street journal that the yields on some risky bonds have increased by more than 200 basis points since last month. as a trader, you are concerned that yields may increase another 200 bps and want to understand the effect this would have on a bond you own. suppose you own a bond with a dollar duration of 677.75 trading at 70.3057. if the bond’s yield increases by 200 basis points, as you fear it will, by how much will the bond price change in percentage terms?

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Suppose you are a bond trader. you read in the wall street journal that the yields on some risky bon...
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