medium · CFA Level I Fixed Income
Helion Rail has issued a callable corporate bond currently trading at 102.50. Using a valuation model, an analyst determines that if the benchmark yield curve shifts down by 25 basis points, the bond's price would rise to 103.10. If the curve shifts up by 25 basis points, the price would fall to 101.40.
The effective duration of this bond is closest to:
- 3.32
- 1.66
- 6.63
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