Suppose you have a short position in a 30-year 6-coupon, Ask an Expert

Finance

Suppose you have a short position in a 30-year 6%-coupon bond and a long position in a zero- coupon bond with exactly the same market value and duration. If all zero rates fall by 20 basis points, will your net position rise or fall in value? Explain.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91264307

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