A bond is currently trading at 101.2710. With a +20 bps parallel shift in the benchmark yield

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A bond is currently trading at 101.2710. With a +20 bps parallel shift in the benchmark yield curve, the bond price becomes 100.9705; with a -20 bps shift, the price becomes 101.5857.

What is the bond's effective duration?

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: Apr 28, 2023 03:35 AM

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A bond is currently trading at 101.2710. With a +20 bps parallel shift in the benchmark yield

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The effective duration of a bond measures its sensitivity to changes in intere... View the full answer

Introduction To Corporate Finance

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