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were going to fall by 50 basis points over the next six months? Show the calculations and explain. a) A bond with a Macaulay duration of 8.36 years that's currently being priced to yield 7.25% ) A bond with a Macaulay duration of 9.23 years that's priced to yield 9.86% :) A bond with a Macaulay duration of 8.68 years that's priced to yield 5.94%

were going to fall by 50 basis points over the next six months? Show the calculations and explain. a) A bond with a Macaulay duration of 8.36 years that's currently being priced to yield 7.25% ) A bond with a Macaulay duration of 9.23 years that's priced to yield 9.86% :) A bond with a Macaulay duration of 8.68 years that's priced to yield 5.94%

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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2). Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next six months? Show the calculations and explain. a) A bond with a Macaulay duration of 8.36 years that's currently being priced to yield 7.25% b) A bond with a Macaulay duration of 9.23 years that's priced to yield 9.86% c) A bond with a Macaulay duration of 8.68 years that's priced to yield 5.94%
Transcribed Image Text:2). Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next six months? Show the calculations and explain. a) A bond with a Macaulay duration of 8.36 years that's currently being priced to yield 7.25% b) A bond with a Macaulay duration of 9.23 years that's priced to yield 9.86% c) A bond with a Macaulay duration of 8.68 years that's priced to yield 5.94%
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