A semiannual government bond has a yield of 6%. The duration is 3 years and 6 months.

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A semiannual government bond has a yield of 6%. The duration is 3 years and 6 months. The Fed decreases its yield by 20 bps. What is the change in price of this bond as a fraction of its initial price?

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Applied Linear Algebra

ISBN: 978-0131473829

1st edition

Authors: Peter J. Olver, Cheri Shakiban

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Posted Date: Oct 29, 2022 02:03 AM

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A semiannual government bond has a yield of 6%. The duration is 3 years and 6 months.

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Duration of bond 3 years and 6 months ie 35 years yiel... View the full answer

Applied Linear Algebra

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