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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,

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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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