Question
A two-year 8% coupon bond that makes annual coupon payments has a face value of 100$ and an (annual) yield to maturity of 3%. a.What
A two-year 8% coupon bond that makes annual coupon payments has a face value of 100$ and an (annual) yield to maturity of 3%.
a.What is the price of the bond?
b.How would the price of the bond change if the yield went up to 8%?
c.Calculate the modified duration of this bond when the yield is 3%.
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
