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1 / 1 What is duration of a bond? Explain briefly. A 4 years bond with an annual coupon rate of 5% has a face
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What is duration of a bond? Explain briefly.
A 4 years bond with an annual coupon rate of 5% has a face value of $1000 and is trading for $930. What are the MacD and ModD if the current market interest rate is 8 %? Show your calculations step-by-step. do I need to use current interest rate or interest rate of trading value of the bond which is 7% to ake the calculation?
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
