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these are all three completely different questions Q5. Challenge Q: What is the Duration on Bond B below, a $1,000 Ten-Year 20% Coupon Bond When
these are all three completely different questions
Q5. Challenge Q: What is the Duration on Bond B below, a $1,000 Ten-Year 20% Coupon Bond When Its Interest Rate Is 20% ? Before Starting ask yourself will it be higher or lower than the duration of Bond A? Why? Q6. Assume you have $200 of Bond A and $300 of Bond B? What is the Duration of your portfolio? Q7. Using the Duration of your portfolio from Q5, what would the price change of your portfolio be if interest rates went from 20% to 15% ? Q5. Challenge Q: What is the Duration on Bond B below, a $1,000 Ten-Year 20% Coupon Bond When Its Interest Rate Is 20% ? Before Starting ask yourself will it be higher or lower than the duration of Bond A? Why? Q6. Assume you have $200 of Bond A and $300 of Bond B? What is the Duration of your portfolio? Q7. Using the Duration of your portfolio from Q5, what would the price change of your portfolio be if interest rates went from 20% to 15% Step by Step Solution
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