question archive A 9%, 16-year annual pay bond has a yield to maturity of 11% and Macaulay duration of 9
A 9%, 16-year annual pay bond has a yield to maturity of 11% and Macaulay duration of 9
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A 9%, 16-year annual pay bond has a yield to maturity of 11% and Macaulay duration of 9.25 years. If the
market yield declines by 32 basis points, answer the following question: Will the price of the bond go up or
down, given the change in rates? Why is the duration of the bond much lower than the maturity of the bond?
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