Question
Bond ABC has maturity of 1.5 years, coupon rate of 10% (interest paid semiannually), par value of $100, and YTM of 8%. Using the information
Bond ABC has maturity of 1.5 years, coupon rate of 10% (interest paid semiannually), par value of $100, and YTM of 8%.
Using the information of question 6, calculate the actual (not approximate) Modified duration of this bond in years. (Round to 4 decimal places)
Based on question 6-8, calculate the new price based on duration-predicted price change. (
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Understanding Government Finance
Authors: Brian Romanchuk
1st Edition
0994748051, 9780994748058
