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On 11/1/2019, you are looking at Dow Chemical (CUSIP 260543BJ1) corporate bond paying 7.375% fixed (semiannual) coupon and maturing on 11/1/2029. The yield to maturity
On 11/1/2019, you are looking at Dow Chemical (CUSIP 260543BJ1) corporate bond paying 7.375% fixed (semiannual) coupon and maturing on 11/1/2029. The yield to maturity is 4.58%, implying a yield spread of 188 bps over 10-year Treasury note. Note the day count convention is 30/360.
d. Calculate the modified duration and the spread duration of the bond. Are they the same or different? Why?
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