Question
You hold bond X with the following characteristics: Coupon: 5% TAB or YTM: 4% Maturity: 5 years Face value: 1000 Frequency: 1 (annual) What would
You hold bond X with the following characteristics:
Coupon: 5%
TAB or YTM: 4%
Maturity: 5 years
Face value: 1000
Frequency: 1 (annual)
What would your capital gain or loss be (in ) if market interest rates (YTM) vary on average by + 1%? Put the sign of the variation, in case of loss. For example, if capital loss of 10; answer -10
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
10th Global Edition
0273765736, 978-0273765738
