dollar duration question question, practice, interest

kmf229

Is dollar duration independent of the anticipated change in interest rates? I think it is according to the readings, but one of the questions in the schweser practice exams has me wondering what I’m missing. Test #3, pm 15.1.
Thanks.

kmf229

No. Usually the change is given in the problem. If it is not, i would assume a 100bp/1% change:
DD = - effective duration * change in rates (in decimal form) * portfolio/position value