Question
The most recently issued Amazon 10 year bond was issued at a spread of 80bps to US Treasuries and priced at par; the 10 year
The most recently issued Amazon 10 year bond was issued at a spread of 80bps to US Treasuries and priced at par; the 10 year US Treasury at the time had a yield of 1.6%. The duration and spread duration of the Amazon bond are both 8 years. If Treasuries yields decrease by 25bps and the spread widens by 50bps, what is the new price of the bond?
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Money And Capital Markets
Authors: Peter Rose, Milton Marquis
10th Edition
0077235800, 9780077235802
