14. Duration (S3.2) Calculate durations and modified durations for the 3% bonds in Table 3.2. You can

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14. Duration (S3.2) Calculate durations and modified durations for the 3% bonds in Table 3.2.

You can follow the procedure set out in Table 3.4 for the 9% coupon bonds. Confirm that modified duration closely predicts the impact of a 1% change in interest rates on the bond prices.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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