Question
A 6% 5-year coupon paying bond with a par value of $1000 is trading at an YTM of 9%. What is the modified duration of
A 6% 5-year coupon paying bond with a par value of $1000 is trading at an YTM of 9%. What is the modified duration of the bond? If the YTM increases by 150 bp what will be the actual change in the bond price? What will be the change in the bond price using MD?
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Investment Management
Authors: Stephen Lofthouse
2nd Edition
047149237X, 9780471492375
