Question
A credit analyst is assessing a two-year, 8.5% coupon bond with an effective duration of 2.7 issued by LOMI plc. Because of a recent slump
A credit analyst is assessing a two-year, 8.5% coupon bond with an effective duration of 2.7 issued by LOMI plc. Because of a recent slump in operating revenue, the bonds yield to maturity has increased from 5.31% to 5.87%.
i) Compute the impact of the change in yield to maturity on the return of the bond, without the convexity adjustment
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Teaching Public Budgeting And Finance
Authors: Meagan M. Jordan, Bruce D. McDonald III
1st Edition
1032146680, 978-1032146683
