Question
Consider a 2-year $1000 bond with 5% coupon rate making semi-annual coupon payment. The yield curve is flat at YTM: 4.23% What is the price
Consider a 2-year $1000 bond with 5% coupon rate making semi-annual coupon payment. The yield curve is flat at YTM: 4.23%
What is the price of the bond?
What is the duration of the bond?
Use the duration role to calculate the charge in price when interest rates go up by 3%?
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Derivatives And Internal Models
Authors: Hans Peter Deutsch, Mark W. Beinker
5th Edition
3030229017, 9783030229016
