1 a 7-year bond with a 2 ytm is priced at 220 given that, Ask an Expert

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1. A 7-year bond with a 2% YTM is priced at $2.20. Given that the bond price at 3% YTM is $2.10 and the bond price at 1% YTM is $2.40, what is the effective sensitivity for 1 bpt move of YTM ?

2. Describe a) what kind of credit exposure you get from buying an OTC call option on Apple stock from an investment bank, b) under what circumstances could the amount of your credit exposure increase, and c) one method you can use to mitigate the amount of your credit exposure.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92775035

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