P11.20 An investor wants to find the duration of a 25-year, 6% semi-annual-pay, non-callable bond thats currently

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P11.20 An investor wants to find the duration of a 25-year, 6% semi-annual-pay, non-callable bond that’s currently priced in the market at $882.72, to yield 7%. Using a 50-basis-point change in yield, find the effective duration of this bond. (Hint: Use Equation 11.11.)

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Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

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