Question
A. Calculate the duration of a $1,000, 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%. B. Consider
A. Calculate the duration of a $1,000, 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%.
B. Consider the bond in the previous question. Calculate the expected price change if interest rates drop to 6.75% using the duration approximation. Calculate the actual price change using discounted cash flow.
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Microfinance And Sustainable Development In Africa
Authors: Yahaya Alhassan, Uzoechi Nwagbara
1st Edition
1799874990,1799875024
