Question
(Assume the 11% is compounded semi-annually, not continuously) A five year bond with a yield of 11% pays an 8% coupon at the end of
(Assume the 11% is compounded semi-annually, not continuously) A five year bond with a yield of 11% pays an 8% coupon at the end of each year.
A) What is the bonds price?
B) What is the bond's duration?
C) Use the duration to calculate the effect on the bonds price of a 0.2% decrease in its yield?
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Multinational Financial Management
Authors: Alan C. Shapiro
7th Edition
0471395307, 9780471395300
