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An annual corporate bond is priced to yield 10.2% annually and has a price of 1014 and a Macaulay duration of D=7 years. Estimate the
An annual corporate bond is priced to yield 10.2% annually and has a price of 1014 and a Macaulay duration of D=7 years. Estimate the change in price if rates increase by 0.6% using first-order modified approximation & first-order Macaulay approximation.
#1 -> first-order modified approximation
#2 -> first-order Macaulay approximation
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