Question
Problem 10-30 Using Duration (LO4, CFA3) You find a bond with 26 years until maturity that has a coupon rate of 6.0 percent and a
Problem 10-30 Using Duration (LO4, CFA3) You find a bond with 26 years until maturity that has a coupon rate of 6.0 percent and a yield to maturity of 5.4 percent. Suppose the yield to maturity on the bond increases by 0.25 percent. a. What is the new price of the bond using duration and using the bond pricing formula? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Now suppose the original yield to maturity is increased by 1 percent. What is the new price of the bond? \
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Fixed Income Markets And Their Derivatives
Authors: Suresh Sundaresan
3rd Edition
0123850517, 978-0123704719
