Modified duration... represents the % impact - expressed as a number, not as a decimal – on price given a 19% change in yield. represents the weighted average term to maturity – expressed in years - of a bond's cash flows. represents the $ impact on a bond's price of a 100-basis point change in interest rates. is useful for quantifying a bond's credit risk.

Modified duration... represents the % impact - expressed as a number, not as a decimal – on price given a 19% change in yield. represents the weighted average term to maturity – expressed in years - of a bond's cash flows. represents the $ impact on a bond's price of a 100-basis point change in interest rates. is useful for quantifying a bond's credit risk.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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