5. A 4 year Treasury Bond with a face value of $1,000 and an annual coupon rate of 5.80% has a yield to maturity of 4.29%. This bond makes 2 (semi- annual) coupon payments per year and thus has periods until maturity. What is the price sensitivity of a bond to changes in yield and how does that compare to the duration approximation, and compare to the duration plus convexity approximation? mi
5. A 4 year Treasury Bond with a face value of $1,000 and an annual coupon rate of 5.80% has a yield to maturity of 4.29%. This bond makes 2 (semi- annual) coupon payments per year and thus has periods until maturity. What is the price sensitivity of a bond to changes in yield and how does that compare to the duration approximation, and compare to the duration plus convexity approximation? mi
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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