You own an Amazon corporate bond, priced at 100.5, with a duration and spread duration of 8,

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You own an Amazon corporate bond, priced at 100.5, with a duration and spread duration of 8, and a spread to Treasuries of 70bps. Treasury yields increase by 25bps and Amazon's spread widens by 50bps. What is your new bond price?

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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Posted Date: May 24, 2023 03:15 AM

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You own an Amazon corporate bond, priced at 100.5, with a duration and spread duration of 8,

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Based on the given information the initial bond price is 1005 the duration is 8 and the spread durat... View the full answer

Investment Analysis and Portfolio Management

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