How much to expect the price of the asset to go up
You own a fixed-income asset with a duration of 13 years. If the level of interest rates, which is currently 9%, goes down by 20 basis points, how much do you expect the price of the asset to go up (in percentage terms)?
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If the level of interest rates, which is currently 9%, goes down by 20 basis points, how much do you expect the price of the asset to go up (in percentage terms)?
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