Question
Kenny would like to invest in a bond that has an FV of 1,000 USD, pay a semiannual coupon of 1%, the interest rate is
Kenny would like to invest in a bond that has an FV of 1,000 USD, pay a semiannual coupon of 1%, the interest rate is 2% p.a. (semi-annual compounding) and has a maturity of 1 year.
a) Calculate the Modied Duration of the bond and explain what it means.
b) Calculate the DV01 of the bond and explain what it means.
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Tested Forex Strategies Learn The Proven Strategies Of Forex News Trading
Authors: Wayne Walker
1st Edition
1546393102, 978-1546393108
