Question
1) Calculate the duration of a $1,000, 9% coupon bond with three years to maturity. Assume that all market interest rates are 6%. (Submit your
1) Calculate the duration of a $1,000, 9% coupon bond with three years to maturity. Assume that all market interest rates are 6%. (Submit your answer in excel format for this question). 2) Consider the bond in the previous question. Calculate the expected price change if interest rate fall to 4.5% using the duration approximation?
2) Consider the bond in the previous question. Calculate the expected price change if interest rate fall to 4.5% using the duration approximation?
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
