Question
a. Calculate the duration of a 2-year, $1,000 bond that pays an annual coupon of 11 percent and trades at a yield of 13 percent.
a. Calculate the duration of a 2-year, $1,000 bond that pays an annual coupon of 11 percent and trades at a yield of 13 percent.
b. What is the implied price volatility of the above bond if interest rates decline by 0.50 percent or 50 basis points?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
