A bond currently sells for $1,110, which gives it a yield to maturity of 5%. Suppose...
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A bond currently sells for $1,110, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,065. What is the modified duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.) X Answer is complete but not entirely correct. 17.0270 years Modified duration A bond currently sells for $1,110, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,065. What is the modified duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.) X Answer is complete but not entirely correct. 17.0270 years Modified duration
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To calculate the modified duration of the bond we can use the following formula Modified Durat... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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