Question
A bond currently sells for $1,190, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 20 basis points,
A bond currently sells for $1,190, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 20 basis points, the price of the bond falls to $1,150. What is the duration of this bond?
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
