BuckStocksHere
Semper Fi!
so I'm stuck on this -
___hypothetical situation_____
I have 2 bonds
10,000 US Treasury Bonds ------------Term 10 ----------- Duration 7.12yrs ----- Current FMV = $10,0000
5,000 US Treasury Bonds -------------Term 20 ------------Duration 9.95yrs ---------Current FMV = $5,000
If Interest Rates for all maturities increase by 1.0%, what will be the approximate value of the bonds in the portfolio?
I feel like I should know how to do this and I am COMPLETELY brain dead stuck..... any help out there?!?! please!
___hypothetical situation_____
I have 2 bonds
10,000 US Treasury Bonds ------------Term 10 ----------- Duration 7.12yrs ----- Current FMV = $10,0000
5,000 US Treasury Bonds -------------Term 20 ------------Duration 9.95yrs ---------Current FMV = $5,000
If Interest Rates for all maturities increase by 1.0%, what will be the approximate value of the bonds in the portfolio?
I feel like I should know how to do this and I am COMPLETELY brain dead stuck..... any help out there?!?! please!