hard · FRM Part 1
A corporate bond with a market value of $1,050 has a modified duration of 7.4 years and a convexity of 92.
If the market yield to maturity suddenly increases by 125 basis points, what is the estimated new price of the bond using a second-order approximation?
- $954.32
- $952.88
- $967.84
- $960.36
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