Question
What is the duration of a 3-year $1,000 face bond that pays a 5% coupon; and the current YTM is 4%? What happens to the
What is the duration of a 3-year $1,000 face bond that pays a 5% coupon; and the current YTM is 4%? What happens to the value of the bond if rates move up to 5%? What is the new price of the bond at 5% YTM? What has happened to the bonds duration with the increase to 5% YTM?
Face 1000
Years 3
Coupon 5%
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Finance A Quantitative Introduction Volume 1
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128015845, 978-0128015841
