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A bond with 3 years to maturity and a coupon of 6.25 percent is currently selling at $932.24. Assume annual coupon payments. What is its
- A bond with 3 years to maturity and a coupon of 6.25 percent is currently selling at $932.24. Assume annual coupon payments.
- What is its yield to maturity?
Compute its duration using Equation 5.7 and the yield-to-maturity calculated above as the discount rate.
- Ifinterestratesareexpectedtodecreaseby50basispoints,whatistheexpecteddollarchangeinprice?Whatistheexpectedpercentagechangeinprice
( i need the answer in word doc. )
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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
3rd Edition
0470530677, 978-0470530672
