Question
A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 11.27 years and convexity of 183.3. The bond
A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 11.27 years and convexity of 183.3. The bond currently sells at a yield to maturity of 8%.
e-2. What price would be predicted by the duration rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Guardians Of Finance
Authors: James R. Barth, Gerard Caprio, Ross Levine
1st Edition
0262526840, 978-0262526845
