Use the Linear Approximation. A bond that pays $10,000 in 6 years is offered for sale at
Question:
Use the Linear Approximation. A bond that pays $10,000 in 6 years is offered for sale at a price P. The percentage yield Y of the bond is
Verify that if P = $7500, then Y = 4.91%. Estimate the drop in yield if the price rises to $7700.
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Let P 7500 Then Y 100 100 145 If the pri...View the full answer
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