Question
Approximate Sensitivity of the bond below to a .01% change in rate (ytm). Note that .01% is 1/10000; it's called a basis point. The coupon
Approximate Sensitivity of the bond below to a .01% change in rate (ytm). Note that .01% is 1/10000; it's called a basis point. The coupon pays annually. Face value: 2000000, ytm: 3%, coupon: 4%, maturity: 10
1. Calculate the Duration of the bond.
2. Estimate the sensitivity of the bond using the Duration.
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
8th Edition
0324065914, 9780324065916
