Calculate the duration of this 4-year par bond that has an annual coupon rate of 6.5% and

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Calculate the duration of this 4-year par bond that has an annual coupon rate of 6.5% and a remaining time to maturity of 4 years.

Suppose the market yield over the next year is expected to go down by 30 basis points (i.e., 0.30%). Estimate the following for this 4-year par bond:

1. The bond's expected price change?

2. Your expected return over the next year?

Related Book For answer-question

Investments Analysis and Management

ISBN: 978-1118363294

12th edition

Authors: Charles P. Jones

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Posted Date: Feb 06, 2023 09:24 AM

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Calculate the duration of this 4-year par bond that has an annual coupon rate of 6.5% and

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The expected price change for a bond is influenced by a change in market yie... View the full answer

Investments Analysis and Management

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