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Today is 15 November 2021, Sandy just purchased a Treasury bond with a coupon rate of j2 = 3.105% p.a. and a face value of
Today is 15 November 2021, Sandy just purchased a Treasury bond with a coupon rate of j2 = 3.105% p.a. and a face value of $100 that matures at par. The maturity date of this bond is 15 May 2023. d) Which of following statement is incorrect? O a. We can use the duration of this Treasury bond to measure its price sensitivity. O b. The duration of this Treasury bond will be higher if yield rate is higher. O c. We can use the PV formula in Excel to calculate the bond price if we are given the yield rate O d. The purchase price of this Treasury bond will decrease, if this Treasury bond i subject to tax payments
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