Question
An investor wants to find the duration ofa(n) 25-year, 6% semiannualpay, noncallable bondthat's currently priced in the market at $882.72, to yield 7%. Using a
An investor wants to find the duration ofa(n) 25-year, 6% semiannualpay, noncallable bondthat's currently priced in the market at $882.72, to yield 7%. Using a 50 basis point change inyield, find the effective duration of this bond ?
The new price of the bond if the market interest rate decreases by 50 basis points(or 0.5%) is?
The new price of the bond if the market interest rate increases by 50 basis points(or 0.5%) is?
The effective duration of the bond is?
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
