# Question

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?

(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?

## Answer to relevant Questions

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