Question
A bond is currently trading at 101.2710. With a +20 bps parallel shift in the benchmark yield curve, the bond price becomes 100.9705; with a
A bond is currently trading at 101.2710. With a +20 bps parallel shift in the benchmark yield curve, the bond price becomes 100.9705; with a -20 bps shift, the price becomes 101.5857.
What is the bond's effective duration?
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The effective duration of a bond measures its sensitivity to changes in intere...
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
