Question: State why you would agree or disagree with the following
State why you would agree or disagree with the following statement: For a 1-basis point change in yield, the price value of a basis point is equal to the dollar duration.
Answer to relevant QuestionsThe November 26, 1990, issue of BondWeek includes an article, “Van Kampen Merritt Shortens.” The article begins as follows: “Peter Hegel, first V.P. at Van Kampen Merritt Investment Advisory, is shortening his $3 ...You observe the yields of the following Treasury securities (all yields are shown on a bond-equivalent basis): All the securities maturing from 1.5 years on are selling at par. The 0.5 and 1.0-year securities are zero-coupon ...The yield spread between two corporate bond issues reflects more than just differences in their credit risk. What other factors would the spread reflect? Why do market participants in some countries prefer to use the swap curve rather than the government bond yield curve? What are the differences among a Treasury bill, Treasury note, and Treasury bond?
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