1.Calculate the duration of a two-year, $1000 bond that pays an annual coupon of 10 per cent...
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1.Calculate the duration of a two-year, $1000 bond that pays an annual coupon of 10 per cent and trades at a yield of 14 per cent. What is the expected change in the price of the bond if interest rates decline by 0.50 per cent (50 basis points)? LO 6.1, 6.4
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Financial Institutions Management A Risk Management
ISBN: 9781743073551
4th Edition
Authors: Helen Lange, Anthony Saunders, Marcia Millon Cornett
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