Question
A bond currently sells for $1050, which gives it a YTM of 8.5%. Suppose the bond yield falls by 75 basis points, the price of
A bond currently sells for $1050, which gives it a YTM of 8.5%. Suppose the bond yield falls by 75 basis points, the price of the bond increases to $1,125. What is the duration of the bond? Round your answer to two decimal places.
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
