8. a 14% semiannual paying coupon bond has six years to maturity. The Bond is currently trading at par. Using a 25 basis point change in yield A) what is the effective duration of the bond? B) what is the effective duration if the bond is putable at par today? Par Value=100

8. a 14% semiannual paying coupon bond has six years to maturity. The Bond is currently trading at par. Using a 25 basis point change in yield A) what is the effective duration of the bond? B) what is the effective duration if the bond is putable at par today? Par Value=100

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 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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8. a 14% semiannual paying coupon bond has six years to maturity. The Bond is currently trading at
par. Using a 25 basis point change in yield A) what is the effective duration of the bond? B) what is
the effective duration if the bond is putable at par today? Par Value=100

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