maratikus I am curious to know how you solved using just the information given… might be useful, someday, sometime CP
I think maratikus just did what I did above…use the 2 “end points” given.
cpk123, i solved the problem exactly the way LongOnCFA did. Your solution is more accurate but LongOnCFA’s solution is accurate enough to get to the right answer.
Duration = (P(-) - P(+)) / ( 2 * P0 * Delta r) Avg = P0 = 96.2665 Delta r = 8.3 - 7.7 = 0.6% = 0.006 Duration = (98.469 - 94.064) / (2 * 96.2665 * 0.006) = 4.405/1.155198 = 3.8132 This answer is not even there in the listed option 
. Where am I going wrong? It’s been a long time, since I have bumped Bonds… - Dinesh S
the change in basis points is 30 points, not 60 points, since you’re going up and down 30 points, so you have 60 altogether…