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3a) Calculate the Macaulay Duration of a 6% annual coupon bond with a face value of a 1000 and three years to maturity. Assume that
3a) Calculate the Macaulay Duration of a 6% annual coupon bond with a face value of a 1000 and three years to maturity. Assume that all market interest rates are 7%
b) The interest rates now drops to 6.75%. Work out the EXPECTED price change using the modified duration, and then the ACTUAL price change.
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3a Calculate the Macaulay Duration To calculate the Macaulay Duration we need to calculate the prese...Get Instant Access to Expert-Tailored Solutions
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