Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A bond currently sells for $1,170, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 30 basis points,

A bond currently sells for $1,170, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 30 basis points, the price of the bond falls to $1,140. What is the duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate And Project Finance Modeling Theory And Practice

Authors: Edward Bodmer

1st Edition

1118854365, 9781118854365

More Books

Students also viewed these Finance questions

Question

What is an activated amino acid?

Answered: 1 week ago

Question

Explain the importance of prioritizing training and HRD needs

Answered: 1 week ago