A bond's yield is 5% and the forward yield volatility is quoted as 20%. The modified duration of the bond at the maturity of the option is 6 years. What would the market assume to be the bond forward price volatility? _ _ _ _ _ _

Name: A bond's yield is 5% and the forward yield volatility is quoted as 20%. The modified duration of the bond at the maturity of the option is 6 years. What would the market assume to be the bond forward price volatility? _ _ _ _ _ _
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The Answer is 6%

A Bond's Yield Is 5% and the Forward Yield Volatility