a 2 0 - year, 7 % semi - annual coupon bond ( R 1 0 0

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Question:

20 -

year,

7 %

semi

-

annual coupon bond

(

1000

par value

)

is priced at a yield maturity of

12 % .

The yield changes by

40

basis points. the effective duration of the bond is closest to

Posted Date: May 10, 2024 02:01 AM

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a 2 0 - year, 7 % semi - annual coupon bond ( R 1 0 0

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Expert Answer:

To calculate the effective duration of a bond we need to consider the bonds price sensitivity to cha... View the full answer

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