Question
3 and 2 deciamals please Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 9 percent
3 and 2 deciamals please Consider the following. |
a. | What is the duration of a two-year bond that pays an annual coupon of 9 percent and whose current yield to maturity is 13 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) |
Duration of a bond |
b. | What is the expected change in the price of the bond if interest rates are expected to decline by 0.5 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
Expected change in the price | $ |
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