Bank Beta has an inventory of AAA-rated, 10-year zero-coupon bonds with a face value of $100 million.

Question:

Bank Beta has an inventory of AAA-rated, 10-year zero-coupon bonds with a of $100 million. The modified duration of these bonds is 12.5 years, the DEAR is $2,150,000, and the potential adverse move in yields is 35 basis points. What is the market value of the bonds, the yield on the bonds, and the duration of the bonds? Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...