An analyst is evaluating a bond currently priced at $102.50….
An analyst is evaluating a bond currently priced at $102.50. If market interest rates decrease by 25 basis points, the bond’s price rises to $103.15. If rates increase by 25 basis points, the bond’s price falls to $101.60. What is the Effective Duration of the bond?
Read DetailsIn the previous problem, the bond exhibited the following ga…
In the previous problem, the bond exhibited the following gain/loss when interest rates decreased/increased: Price Gain (rates down): $0.65 Price Loss (rates up): $0.90 Because the bond price falls more when rates rise than it rises when rates fall, this bond exhibits:
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