Assume that the spread between US and German bonds is 300 bps, providing German investors who purchase
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Assume that the spread between US and German bonds is 300 bps, providing German investors who purchase a US bond with an additional yield income of 75 bps per quarter.
Th e duration of the German bond is 8.3. If German interest rates should decline, how much of a decline is required to completely wipe out the quarterly yield advantage for the German investor?
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Related Book For 
Fixed Income Analysis
ISBN: 9788126563128
3rd Edition
Authors: Barbara S. Petitt, Jerald E. Pinto, Wendy L. Pirie, Bob Kopprasch
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