I am learning for a class that is partly about finance and I don't have any background in finance at all.
I am struggling with a question that was asked in last years exam:
A bond trades at £1015, has a duration of 5 and yields 4.69%.
If yields increase to 4.87%, what will the new price be?
There is no other information. (The only type of yield we had is Yield to Maturity, if that is relevant.)
I am currently trying out some variations (moving terms around ...) of the formula for the present value of money, but I can't come up with anything that behaves in a sensible way.
I also tried to read this article and followed some of the links, but I am still lost. :(