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You own an Amazon corporate bond, priced at 100.5, with a duration and spread duration of 8, and a spread to Treasuries of 70bps. Treasury
You own an Amazon corporate bond, priced at 100.5, with a duration and spread duration of 8, and a spread to Treasuries of 70bps. Treasury yields increase by 25bps and Amazon's spread widens by 50bps. What is your new bond price?
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Based on the given information the initial bond price is 1005 the duration is 8 and the spread durat...
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
