Question
Consider a 3-year maturity annual 9% coupon paying bond with a YTM of 12%. What is the Duration of this bond? What will be the
Consider a 3-year maturity annual 9% coupon paying bond with a YTM of 12%. What is the Duration of this bond?
What will be the predicted price of this (using Duration in the calculations) bond if the market yield increases by 100 basis points [Remember, 100 basis points = 1% point]?
You must use the duration formula to get full points for this part.
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
