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a pension fund must pay out $1 million next year, $2 million the following year and $3 million the year after that. A) If the
a pension fund must pay out $1 million next year, $2 million the following year and $3 million the year after that.
A) If the discount rate is 8%, what is the duration of this set of payments.
B) Assume that the interest rate increases by 25 basis point (0.0025), by what percentage will the bond price change?
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Financial Economics
Authors: Zvi Bodie, Robert C Merton, David Cleeton
2nd Edition
0558785751, 9780558785758
