Compute the modified duration of a 9% coupon,3-year corporate bond with a yield to maturity of 12%.
A) 2.45
B) 2.75
C) 2.88
D) 3.00
Correct Answer:
Verified
Q37: In a pure yield pickup swap, _
Q38: Where Y = yield to maturity,the duration
Q39: The duration of a portfolio of bonds
Q40: Moving to higher yield bonds,usually with longer
Q41: When interest rates increase,the duration of a
Q43: A bond currently has a price of
Q44: A 20-year maturity bond pays interest of
Q45: Duration facilitates the comparison of bonds with
Q46: A bond pays annual interest. Its coupon
Q47: A fixed income portfolio manager sets a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents