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Unformatted text preview: inexperienced investor? What factors influence duration? 3. In quantitative terms, what insight does duration give us about the interest rate sensitivity of a bond? 4. Suppose that the duration of the bond you are evaluating is 3.25 (it isn’t, but go with it for this question). What will happen to the price of the bond if interest rates decrease by 2%?...
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This note was uploaded on 10/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Fall '11 term at BYU.
- Fall '11