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| Teaching Since: | Apr 2017 |
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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Interest Rate Risk Bond J is a 5 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 20 years to maturity and have a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? What if rates suddenly fall by 2 percent instead? What does this problem tell you about the interest rate risk of lower coupon bonds?
Finding the Bond Maturity Crosby Co. has 7.5 percent coupon bonds with a YTM of 6.84 percent. The current yield on these bonds is 7.13 percent. How many years do these bonds have left until they mature?
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