1. Susan Oil has just issued a bond with the following
characteristics:
The modified duration of Susan Oil’s bond is ____________.
3.86
3.87
3.90
4.20
None of the above
2. Kepler International has just issued a bond with the
following characteristics:
The modified duration of Kepler International’s bond is
____________.
7.04
8.29
9.23
9.43
None of the above
3.Robinson has a bond that is traded at its par value of $1,000,
has a 5% coupon rate, and has a 4-year maturity. If the interest
rate were to increase by 150 basis points, his predicted new price
for the bond based on duration only is ____________.
925.0
935.1
938.2
993.8
None of the above
thank you
1. Susan Oil has just issued a bond with the following characteristics: The modified duration of Susan Oil’s bond is ___
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