Question
Compute the approximate percentage price change using duration for the two 8% coupon bonds assuming that the yield increase by 10 basis point. a. Duration
Compute the approximate percentage price change using duration for the two 8% coupon bonds assuming that the yield increase by 10 basis point.
a. Duration for 8% 4-year bond=3.44
b. Duration for 8% 25-year bond=12.94
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
