Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A bond has a price of $115.188 per $100 par value and a yield of 9.0% pa. Its term is three years and its Macaulay
A bond has a price of $115.188 per $100 par value and a yield of 9.0% pa. Its term is three years and its Macaulay Duration is 2.651 years. If the yield increases to 9.1% pa, the new bond price will be closest to:
A) $87.173 B) $112.387 C) $112.786 D) $114.908 E) $115.160
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started