Question
8. A four-year bond with a yield of 8% (continuously compounded) pays a 6% coupon at the end of each year (one coupon per year).
8. A four-year bond with a yield of 8% (continuously compounded) pays a 6% coupon at the end of each year (one coupon per year).
a) What is the bonds price?
b) What is the bonds duration?
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New Issues In Financial Institutions Management
Authors: F Fiordelisi, P Molyneux, D Previati
2010th Edition
0230278108, 978-0230278103
