Question
Calculate the Effective Duration of the below assuming a 50 bps (0.50%) yield increment: Toms Bonds are priced at $99.48. 4.0% coupon, 4.10% yield, pay
Calculate the Effective Duration of the below assuming a 50 bps (0.50%) yield increment:
Toms Bonds are priced at $99.48. 4.0% coupon, 4.10% yield, pay annually and mature in 6 years.
A) 5.751
B) 4.953
C) 5.237
D) 5.389
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-1111879044
