Question
Given a semi-annual bond with YTM = 10%, Macaulay Duration = 6. Three investor A,B,C with the following informations: Investment Horizon Interest rate HPR A
Given a semi-annual bond with YTM = 10%, Macaulay Duration = 6. Three investor A,B,C with the following informations:
|
| Investment Horizon | Interest rate | HPR |
| A | 6 years | Increase 1% | 10% |
| B | 6.2 years | Decrease 1% | Higher than 10% |
| C | 5.9 years | Increase 1% | Lower than 10% |
Which investor estimate their HPR correctly?
Group of answer choices
A and B
B only
A and C
A only
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Accounting
Authors: Carl s. warren, James m. reeve, Philip e. fess
21st Edition
978-0324400205, 324225016, 324188005, 324400209, 9780324225013, 978-0324188004
