Question
5. What is the effective duration of this bond? N = 20, PV = $1,250, PMT = $20, FV = $1,000 Use 0.5% for the
5. What is the effective duration of this bond? N = 20, PV = $1,250, PMT = $20, FV = $1,000
Use 0.5% for the discount rate shocks
6. Using the duration you found in Q5, estimate the gain or loss on the position if interest rates rose by 1.789% across all maturities
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Financial Management
Authors: Rob Quail, Ricardo J. Rodriguez
2nd Edition
1557868441, 9781557868442
