State the directional price change if any assuming interest rate volatility increases for each of
QUESTION
CFA Examination Level II
On May 30, 1999, Janice Kerr is considering purchasing one of the following newly issued 10-year AAA corporate bonds shown in the following exhibit. Kerr notes that the yield curve is currently flat and assumes that the yield curve shifts in an instantaneous and parallel manner.
BOND CHARACTERISTICS
Description
Coupon
Price
ANSWER:
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