Question
A bond currently has a price of $1,050. The yield on the bond is 7%. If the yield increases 28 basis points, the price of
A bond currently has a price of $1,050. The yield on the bond is 7%. If the yield increases 28 basis points, the price of the bond will go down to $1,027. Calculate the duration of this bond in years.
Step by Step Solution
3.39 Rating (161 Votes )
There are 3 Steps involved in it
Step: 1
Answer Calculation of the duration of the bond Formula ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
