Question
A callable bond has a first call price of 102.5 and an MD of 6.02. It trades at 101.21 to yield 4%. Using MD to
A callable bond has a first call price of 102.5 and an MD of 6.02. It trades at 101.21 to yield 4%. Using MD to estimate the price changes, what is the bond's effective duration? Your answer should be to the nearest hundredth.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
