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Consider a two year bond with a 4% annual coupon and a face value of $100. The current yield is 4%. 1. What is the
Consider a two year bond with a 4% annual coupon and a face value of $100. The current
yield is 4%.
1. What is the price of the bond?
2. What is the Duration of the bond?
3. If the yield rises to 5%, what is the bond price according to Duration?
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Core Concepts Of Accounting Information Systems
Authors: Mark G. Simkin, Carolyn A. Strand Norman, Scott Paquette
1st Canadian Edition
