Question
Please use longhand calculation. (Please do not use excel). You are currently invested in a bunch of five-year, zero-coupon, US Government bonds that have an
Please use longhand calculation. (Please do not use excel).
You are currently invested in a bunch of five-year, zero-coupon, US Government bonds that have an annual yield of 6%. Your investment advisor suggests you switch to 15% coupon, $1000 face value six-year bonds that also have a yield of 6%. Considering their risk (as measured by duration) and return, is she correct?
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Handbook Of The Fundamentals Of Financial Decision Making
Authors: Leonard C MacLean, William T Ziemba
1st Edition
9814417343, 978-9814417341
