Question
A bond is currently selling at $1,050. The yield on the bond is 6%. If the yield increases 25 basis points, the price of the
A bond is currently selling at $1,050. The yield on the bond is 6%. If the yield increases 25 basis points, the price of the bond will go down to $1,025. What is the modified duration of this bond? 10.12 9.52 7.46 8.08
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
