A bond duration has a duration of 5. Interest rates move up to 1%. What happens to the price of the bond?
A. The bond’s price drops 5%.
B. The bond’s price goes up 5%.
C. The bond’s price stays stable.
D. The bond’s price stays stable, but its yield goes up 5%.
A. The bond’s price drops 5%.
B. The bond’s price goes up 5%.
C. The bond’s price stays stable.
D. The bond’s price stays stable, but its yield goes up 5%.
What is the Capital Markets Professional Certificate?
This introductory program offers a comprehensive survey of capital markets. Money and banking, the role of central banks and the evolving regulatory landscape are reviewed. The program also provides a thorough grounding in the full range of capital market instruments.
