GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
11th Edition
ISBN: 9781260201550
Author: Bodie
Publisher: MCG
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Chapter 16, Problem 18PS
Summary Introduction

Adequate information:

In this situation, the modified duration accounts for $3.5851, change in yield to maturity is 100 basis points or (0.01) and price is $100.

To calculate:

Change in the fixed rate note price

Introduction:

Fixed rate bond is one of the kind of debt instrument which comprises of fixed interest (coupon) payment in comparison to floating rate bond. Fixed rate note is generally issued for a long period of time and has a predetermined rate of interest.

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