Question
A bond investor has gathered the following information on a 10-year, semi-annual pay US corporate bond: Currently trading at par value Annual coupon of 10%
A bond investor has gathered the following information on a 10-year, semi-annual pay US corporate bond:
Currently trading at par value
Annual coupon of 10%
Estimated price if rates increases by 50bps is 96.99%
Estimated price if rates decreases by 50bps is 103.14%
a) What is the effective duration?
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
