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1 Duration Note B par $1,000.00 term/maturity 5.0 coupon rate 0.000% YTM 8.000% Current Price MACDUR MODDUR EFFDUR EFFCON * Using the info from above
| 1 | Duration | |||
| Note B | ||||
| par | $1,000.00 | |||
| term/maturity | 5.0 | |||
| coupon rate | 0.000% | |||
| YTM | 8.000% | |||
| Current Price | ||||
| MACDUR | ||||
| MODDUR | ||||
| EFFDUR | ||||
| EFFCON | ||||
| * | Using the info from above If interest rates (the required ytm) decline .50%, calculate: | |||
| MODDUR | ||||
| % in price due to MODDUR | ||||
| $ in price due to MODDUR | ||||
| MOD Duration|ONLY estimated Current Price | ||||
| Error in price estimate due to CONVEXITY | ||||
| EFFDUR & EFFCON | ||||
| % in price due to EFFDUR | ||||
| $ in price due to EFFDUR | ||||
| % in price due to EFFCON | ||||
| $ in price due to EFFCON | ||||
| estimated Current Price using EFFCON and EFFDUR adjustments | ||||
| Error in price estimate due to CONVEXITY | ||||
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Basic Finance An Introduction To Financial Institutions, Investments And Management
Authors: Herbert B Mayo
9th Edition
0324322291, 9780324322293
