Question
Suppose a Certificate of Deposit (a CD) has a time to maturity of 2 years, has an implied rate of interest of 2%, and will
Suppose a Certificate of Deposit (a CD) has a time to maturity of 2 years, has an implied rate of interest of 2%, and will pay out $50,000 to the depositor at the time to maturity.
If you instead estimated the new price based on duration, what is the expected new price given interest rates rose 1%?
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Project Financing Analyzing And Structuring Projects
Authors: Frank J Fabozzi, Carmel De Nahlik
1st Edition
9811232393, 9789811232398
