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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
The historical yield spread between AAA bonds and Treasury bonds widened dramati- cally during the credit crisis in 2008. If you believed the spread would soon return to more typical historical levels, what should you have done? This would be an example of what sort of bond swap?
A bond currently sells for $1,050, which gives it a yield to maturity of 6%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,025. What is the duration of this bond?
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