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A bond has a price of $115.188 per $100 par value and a yield of 9.0% pa. Its term is three years and its Macaulay Duration is 2.651 years. If the...
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A bond has a price of $115.188 per $100 par value and a yield of 9.0%

pa. Its term is three years and its Macaulay Duration is 2.651 years. If the yield increases to 9.1% pa, the new bond price will be closest to:
A) $87.173
B) $112.387
C) $112.786
D) $114.908
E) $115.160

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Subject: Business, Finance

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