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A Bond Currently Has a Price of $1,050

question 48

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A bond currently has a price of $1,050.The yield on the bond is 6.00%.If the yield increases 25 basis points,the price of the bond will go down to $1,030.The duration of this bond is ____ years.


Definitions:

Teresa of Avila

A significant figure in Christian mysticism and the Catholic Reformation of the 16th century, known for her writings on the contemplative life and spiritual growth.

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A Catholic voluntary organization dedicated to the service of the poor, established by Frederic Ozanam and named after the saint known for his charity.

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The study of mental disorders and abnormalities, including their symptoms, causes, and treatments.

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