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The modified duration is 10.46 years of ...

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题目

The modified duration is 10.46 years of a bond with a current price of $716.38. What is the bond's DV01?

选项

A.$0.40

B.$0.75

C.$1.25

D.Need more information (yield, maturity)

答案

B

解析

DV01 = modified duration × Price / 10,000 = 10.46 × 716.38 / 10,000 = $0.74933DV01 = modified duration × Price / 10,000 = 10.46 × 716.38 / 10,000 = $0.74933