In which cases is duration sufficient to give us an accurate result of a bond price alteration? Why?
In which cases is duration sufficient to give us an accurate result of a bond price alteration? Why?
a) The unemployment rate is 18%. The central bank is mulling injecting profuse liquidity to the financial markets. You have a choice of 17 year maturity versus 4 year maturity notes. All of them are selling above par. b) In which cases is duration sufficient to give us an accurate result of a bond price alteration? Why?
