Question: a. Given the information below for a 6.2% 18- year bond, compute the price value of a basis point Price=114.1338 Yield=5% Price if yield is

a. Given the information below for a 6.2% 18- year bond, compute the price value of a basis point

  • Price=114.1338
  • Yield=5%
  • Price if yield is 5.01%=114.0051

b. If the duration of the 6.2% 18-year bond is 11.28, what is the estimated price change for a 1 basis point change in yield.

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