Suppose you buy a coupon bond with 5% yield. The maturity
of this bond is 11 years, the modified duration of this bond is 8
years, and the Macaulay duration of this bond is 9 years. Interest
rates have increased after your purchase. If you want to earn a
return higher than 5%, when should you sell the bond?
in 8 years
in 9 years
in 7 years
in 10 years
Suppose you buy a coupon bond with 5% yield. The maturity of this bond is 11 years, the modified duration of this bond i
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
Suppose you buy a coupon bond with 5% yield. The maturity of this bond is 11 years, the modified duration of this bond i
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!