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A bond paying a single coupon of $50 annually with 5 years to maturity and a face value of $1000 presently trades for $1044.52. If the annual discount rate rises evenly at all points of the yield curve by 1% per annum what is the duration estimated loss and the genuine loss? A. -4.55% and -4.26% B.-4.33% and -4.26% C.-4.33% and -4.45% D.-4.38% and -4.26% E. -4.38% and -4.45%

A bond paying a single coupon of $50 annually with 5 years to maturity and a face value of $1000 presently trades for $1044.52. If the annual discount rate rises evenly at all points of the yield curve by 1% per annum what is the duration estimated loss and the genuine loss? A. -4.55% and -4.26% B.-4.33% and -4.26% C.-4.33% and -4.45% D.-4.38% and -4.26% E. -4.38% and -4.45%

Essentials Of Investments
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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am. 126.

A bond paying a single coupon of $50 annually with 5 years to maturity and a face value of $1000 presently trades for $1044.52. If the annual discount rate rises evenly at all points of the yield curve by 1% per annum what is the duration estimated loss and the genuine loss? A. -4.55% and -4.26% B. -4.33% and -4.26% C. -4.33% and -4.45% D. -4.38% and -4.26% E. -4.38% and -4.45%
Transcribed Image Text:A bond paying a single coupon of $50 annually with 5 years to maturity and a face value of $1000 presently trades for $1044.52. If the annual discount rate rises evenly at all points of the yield curve by 1% per annum what is the duration estimated loss and the genuine loss? A. -4.55% and -4.26% B. -4.33% and -4.26% C. -4.33% and -4.45% D. -4.38% and -4.26% E. -4.38% and -4.45%
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