Consider an option-free Bond A with the following information (assume the bonds coupon interest is paid semiannually):
Question:
Consider an option-free Bond A with the following information (assume the bond’s coupon interest is paid semiannually):
Coupon rate = 8%
Yield to maturity on a bond equivalent basis = 8%
Maturity in years = 2 Par value = $1,000 Market price = $1,000
a. What is the price value of a basis point for Bond A?
b. What is the yield value of 1⁄32?
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Related Book For 
Introduction To Fixed Income Analytics
ISBN: 9780470572139
2nd Edition
Authors: Steven V. Mann, Frank J. Fabozzi
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