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We consider to purchase 5-years zero-coupon bond with the nominal value of 1000 USD and YTM of 4 %. We would like to invest in
- We consider to purchase 5-years zero-coupon bond with the nominal value of 1000 USD and YTM of 4 %. We would like to invest in this bond
- For 3 years
- For 7 years
What would be your yield/loss if the day after the bond purchase
- YTM will increase by 1 %
- YTM will decrease by 1 %
Please all the explanations. Thank you
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