Question
The bond was originally issued for 10 years, but today there are 3 maturities (3 years) left. The amount of the bond (Face Value) is
The bond was originally issued for 10 years, but today there are 3 maturities (3 years) left.
The amount of the bond (Face Value) is 100 The interest rate on the bond is 7% The price of the bond today is 95
a) Calculate the yield on the bond (YTM) in% b) Calculate the current yield of the bond c) Calculate the duration of the bond in years d) Calculate the sensitivity of the bond to changes in interest rates (Modified Duration) in%
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The New Managed Account Solutions Handbook
Authors: Stephen D. Gresham, Arlen S. Oransky
1st Edition
0470222786, 978-0470222782
