Assume we have a 15 year 10.23% coupon bond selling for $1,000 and callable at par with semi-annual compounding. What would be the effective duration if the interest rates could change by 50 basis points (annually)? Please enter your answer to the nearest hundredth (in other words if you calculate a duration of 1.23456 years, you must enter at least 1.23). 49.72
Assume we have a 15 year 10.23% coupon bond selling for $1,000 and callable at par with semi-annual compounding. What would be the effective duration if the interest rates could change by 50 basis points (annually)? Please enter your answer to the nearest hundredth (in other words if you calculate a duration of 1.23456 years, you must enter at least 1.23). 49.72
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 2P
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