Question
Microsoft has two bonds outstanding A. At the beginning of the day on 12/31/22, Issue A has a price of $1,100 and a modified duration
Microsoft has two bonds outstanding
A. At the beginning of the day on 12/31/22, Issue A has a price of $1,100 and a modified duration of 7.00.
B. At the beginning of the day on 12/31/22, Issue T has a price of $900 and a modified duration of 9.00.
If, on 12/31/22, the YTMs for both bonds go down by 1%, what will the new price of the bonds after the yield change?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
