Question
A 3-year coupon bond has payments as follows. This 8% coupon bond is currently trading at par ($100). (a) What is the annually compounded yield
A 3-year coupon bond has payments as follows. This 8% coupon bond is currently trading at par ($100). (a) What is the annually compounded yield of the bond? (b) Compute the Duration, and the modified duration of the bond. (c) How much do you expect this bonds price to rise if the yield on the bond declines by 10 basis points compounded annually?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
