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Suppose you purchase a 5 year 5% annual bond that...

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Suppose you purchase a 5 year 5% annual bond that has a YTM of 6%. What is the duration of this bond? Estimate the change in the price of this bond for a 50 basis point increase in the YTM. Estimate the change in the price of this bond for a 50 basis point decrease in the YTM.

 

Paper#9595 | Written in 18-Jul-2015

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