Question
Bond ABC has maturity of 1.5 years, coupon rate of 6% (interest paid semi-annually ), and YTM of 10%. a. Calculate the actual Macaulay duration
Bond ABC has maturity of 1.5 years, coupon rate of 6% (interest paid semi-annually), and YTM of 10%.
a. Calculate the actual Macaulay duration of this bond in years. (Round to 4 decimal places)
b. Then calculate the new price based on duration-predicted price change. (Round to 4 decimal places)
c.The actual dollar price be______as the duration-predicted price calculated in the last question? higher, lower, or the same
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Fundamentals Of Investments Valuation And Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
9th Edition
1260013979, 9781260013979
