What is the percentage change in the price of each bond if its yield to maturity falls from 6%
to 5%?
P (A) to P(B)
Since Price and Yield are inversely proportional therefore:-
Zero Coupon Bond
1 + YTM = (FV/P)^1/n
P (b) / P(a) - 1 = { (1+r(a) / (1+r(b)) }^n - 1
i.e
{1.06/1.05}^15 -1
-------------------------------------------x
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