Question
A 15-year $1000 bond with 8% annual coupons sells at par. What is the price of the bond at an effective rate of 7.92%, using
A 15-year $1000 bond with 8% annual coupons sells at par. What is the price of the bond at an effective rate of 7.92%, using modified duration to approximate the change in price? How does this compare to the exact change in price?
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Entrepreneurial Finance Strategy, Valuation, And Deal Structure
Authors: Janet Smith, Richard Smith, Richard Bliss
1st Edition
0804770913, 9780804770910
