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Consider a bond with maturity 2 year, 100 face value, coupon 5.95%, and yield 7.80%. Compute a dollar duration numerically using a dy =0.001%.
Consider a bond with maturity 2 year, 100 face value, coupon 5.95%, and yield 7.80%. Compute a dollar duration numerically using a dy =0.001%. Report you result with two digits decimal accuracy and the correct sign. Example: -185.95
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Step: 1
To compute the dollar duration of a bond we need to calculate the change in the bonds price for a sm...
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