The current price of an Ajax Corp bond is 100.50. If the yield increased by 25 basis points (bp) the price would decline to 98.35 while if the yield decreased by 25 bp the price would increase to 102.25. What is the effective duration of the bond? Select one O A. 1.95 ○ B. 3.88 O c. 7.76 OD. 15.52

The current price of an Ajax Corp bond is 100.50. If the yield increased by 25 basis points (bp) the price would decline to 98.35 while if the yield decreased by 25 bp the price would increase to 102.25. What is the effective duration of the bond? Select one O A. 1.95 ○ B. 3.88 O c. 7.76 OD. 15.52

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 9FPE: Which of these two bonds offers the highest current yield? Which one has the highest yield to...

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