Question
A 7.500% semiannual coupon payment bond settles on a coupon date. The tenor is 10 years. The bond's yield to maturity is 9.400%. What is
A 7.500% semiannual coupon payment bond settles on a coupon date. The tenor is 10 years. The bond's yield to maturity is 9.400%. What is the bonds approximate modified duration (AMD)? Use yield changes of +/- 40 bps around the yield to maturity for your calculations.
| A. | 5.881 | |
| B. | 6.101 | |
| C. | 6.444 | |
| D. | 6.684 |
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
