Question
6 year, 8% coupon bond with semi annual payments, Par Value = $1000. 1) Find out price of the bond if YTM = 10%. 2)
6 year, 8% coupon bond with semi annual payments, Par Value = $1000.
1) Find out price of the bond if YTM = 10%.
2) What happens to the bond price if YTM decreases 1 basis point?
3) Is the effect of 1 basis point decrease on a 20 year old coupon bond larger, = or smaller than that in 2)?
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
