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2. A U.S. Treasury bond with two years remaining to maturity makes annual coupon payments at 8% per year. The bond is currently trading at
2. A U.S. Treasury bond with two years remaining to maturity makes annual coupon payments at 8% per year. The bond is currently trading at par. (a) Calculate the duration of the bond. (b) If the yield curve shifts up parallelly by 50 basis points, what will be the percentage change in the price of the bond
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
11th Edition
0470004460, 978-0470004463
