Question
An investor wants to find the duration of a(n) 25-year, 10% semiannual pay, noncallable bond that's currently priced in the market at $ 842.38, to
An investor wants to find the duration of a(n) 25-year, 10% semiannual pay, noncallable bond that's currently priced in the market at $ 842.38, to yield 12%. Using a 100 basis point change in yield, find the effective duration of this bond .
The new price of the bond if the market interest rate decreases by 100 basis points (or 1%) is $______
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
