CFA Level 1 Exam
Question No. 1
A 10-year, semiannual-pay $1,000 bond with a 6% coupon is currently priced at $864.10, to yield 8%. If yields increase by 50 basis points (bp), the new price of the bond would be $833.82. If yields decrease by 50 bp, the new price of the bond would be $895.78. The expected percentage change in the price of this bond for a 100 bp change in yield is closest to:
Choose the correct option from the given list.
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