Today is 15 May 2021. Stéphanie has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at j2 = 3 price was $99.906. The maturity date of this bond is 15 May 2023. d) Which of following statements is incorrect? O a. We can use the duration of this Treasury bond to measure its price sensitivity. O b. The duration of this Treasury bond will be higher if its coupon rate is higher.

Today is 15 May 2021. Stéphanie has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at j2 = 3 price was $99.906. The maturity date of this bond is 15 May 2023. d) Which of following statements is incorrect? O a. We can use the duration of this Treasury bond to measure its price sensitivity. O b. The duration of this Treasury bond will be higher if its coupon rate is higher.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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