URGENT Suppose that Michael Bank holds a 8-year zero-coupon bond with a yield of 6.4% and...
URGENT
Suppose that Michael Bank holds a 8-year zero-coupon bond with a yield of 6.4% and a market value of 1 million. The standard deviation of the bond is 10 basis points. What is the duration of the bond? (1 marks)
Homework Answers
Duration of Zero Coupon bond is equal to Maturity period.
Thus duration of 8 year Zero coupon bond is 8 Years.
Pls comment, if any further assistance is required.
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URGENT
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