Define the bond duration measure


Response to the following problem:

Briefly explain what will happen to a bond's duration measure if each of the following events occur.

a. The yield-to-maturity on the bond falls from 8.5% to 8%.

b. The bond gets one year closer to its maturity.

c. Market interest rates go from 8% to 9%.

d. The bond's modified duration falls by half a year.

 

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Financial Accounting: Define the bond duration measure
Reference No:- TGS02121831

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