Question #121175
6. Duration is a widely used measure of a portfolio’s exposure to yield curve movements. You have a 9 percent, $1000.00 bond with 4 years to maturity paid interest semi-annually. Its YTM is 10 percent. Calculate the market value of the bond.
1
Expert's answer
2020-06-11T11:00:35-0400

MV=10000.090.1=900MV=\frac{1000*0.09}{0.1}=900

MV-market value


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