Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. . Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in four years if the bonds YTM is 10 percent

1. . Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in four years if the bonds YTM is 10 percent and interest is paid semiannually. a. Calculate this bonds modified duration. b. Assuming the bonds YTM goes from 10 percent to 9.5 percent, calculate an estimate of the price change.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

How We Listen?

Answered: 1 week ago