Question
A callable bond has a first call price of 103 and an MD of 7.82. It trades at 101.73 to yield 4.78%. Using MD to
A callable bond has a first call price of 103 and an MD of 7.82. It trades at 101.73 to yield 4.78%. Using MD to estimate the price changes, what is the bond's effective duration? Your answer should be in years to the nearest hundredth of a year. (Please Use Excel to Solve)
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
