Find out the duration of bond, Accounting Basics

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Find out the duration of bond

Problem:

A bond currently sells for $1,050, which gives it an YTM of 6%. Suppose that if the yield increases by 25 bps, the price of the bond falls to $1,025.

Requirement:

Question: What is the duration of this bond?

Note: Explain in detail and show all computations in proper way.

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Accounting Basics: Find out the duration of bond

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Accounting Basics: Find out the duration of bond

Reference No:- TGS0889043

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Difference between chronic renal and acute renal failure

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Ask an Expert for Answer!!

Accounting Basics: Find out the duration of bond

Reference No:- TGS0889043

Recent Questions Asked Accounting Basics

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