Consider the six-year, 8% coupon, 8% yield Eurobond, face value is $1000. Suppose the issuer gets into difficulty and cannot pay the first coupon. Instead, the borrower starts paying later and FI agree that the unpaid interest can be paid in year two.

How is the bond duration?

Answer rating: 100% (QA)

Ans Bond duration measures the sensitivity of a bonds price to changes in interest rates It ... View the full answer