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8.5 + BIU A CD le 15 ili lil Ini 11 3 a) Chapter 11 - Homework Assignment PROBLEM 1: Find the duration of a
8.5 + BIU A CD le 15 ili lil Ini 11 3 a) Chapter 11 - Homework Assignment PROBLEM 1: Find the duration of a 8% coupon bond making annual coupon payments if it has 3 years until maturity and a yield to maturity of 6% b) What is the duration if the yield to maturity is 12% c) What will be the percent change in the prices of the two bonds if the yleld to maturity changes by 50 basis points? What will be the new prices using Duration? What will be the new prices if bond valuation formula is used? d) e) PROBLEM 2: 11
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