Question
Consider a 10-year, 8% annual coupon bond with $1,000 par value. If the current YTM of the bond is 8%, estimate its effective duration based
Consider a 10-year, 8% annual coupon bond with $1,000 par value. If the current YTM of the bond is 8%, estimate its effective duration based on a 10 basis point rate shock (up or down by 5 bps). (10 marks)
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
