Finance Assignment | Professional Writing
June 3rd, 2020
suppose we are long in 7 year zero coupon bonds priced at $1 million. The yield on bold is equals to 7.243% Assume that the bond yield change follows the normal distribution with a mean of zero and standard deviation of 10 basis points.
What is dear for the bond. What is dear of the bond if we define adverse market circumstances as 5% worst case?
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