Question
Assume that the interest rates for all maturities are 4%. Consider zero coupon bonds (STRIPS) with maturities of 5 years, 15 years, and 30 years.
Assume that the interest rates for all maturities are 4%. Consider zero coupon bonds (STRIPS) with maturities of 5 years, 15 years, and 30 years. Compute the actual change in price if interest rates increase by 1%.
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
