Answer the below questions. (a) Suppose that the spread duration for a fixed-rate bond is 2.5. What

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Answer the below questions.
(a) Suppose that the spread duration for a fixed-rate bond is 2.5. What is the approximate change in the bond’s price if the spread changes by 50 basis points?
(b) What is the spread duration of a Treasury security?

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Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

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Question Posted: Aug 22, 2015 07:25 AM

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Answer the below questions. (a) Suppose that the spread duration for a fixed-rate bond is 2.5. What

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a A measure of how a nonTreasury bonds price will change if the spread sought by the market changes ...View the full answer

Bond Markets Analysis and Strategies

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