Consider the following. a. What is the duration of a two-year bond that pays an annual coupon
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Question:
Consider the following.
a. What is the duration of a two-year bond that pays an annual coupon of 11 percent and whose current yield to maturity is 12 percent?
b. What is the expected change in the price of the bond if interest rates are expected to decrease by 0.2 percent?
I got A but I couldn't find out B
a) 1.900
b) ............
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders , Marcia Cornett
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