Question
Which one of the following par value 12% coupon bonds experiences a price change of $23 when the market yield changes by 50 basis points?
Which one of the following par value 12% coupon bonds experiences a price change of $23 when the market yield changes by 50 basis points?(requires calculations)
A. The bond with a duration of 6 years.
B. The bond with a duration of 5 years.
C. The bond with a duration of 2.7 years.
D. The bond with a duration of 5.15 years.
E. None of the above.
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
