Question
An investor is considering purchasing a $1,000 Treasury bond with a 3- year maturity, a 6% coupon and an 8 % required rate of return.
An investor is considering purchasing a $1,000 Treasury bond with a 3- year maturity, a 6% coupon and an 8 % required rate of return. The bond pays interest semiannually. Show your work.
A) What is the bonds duration?
B) What is the bonds modified duration?
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Bankers Handbook On Credit Management
Authors: Indian Institute Of Banking & Finance
1st Edition
9387957853, 978-9387957855
