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Bond = Treasury Pricing date = 22-Oct-20 Annual coupon rate = 3.50% Number coupons per year =2 Maturity date = 22-Oct-38 Yield = 3.25% Par
Bond = Treasury
Pricing date = 22-Oct-20
Annual coupon rate = 3.50%
Number coupons per year =2
Maturity date = 22-Oct-38
Yield = 3.25%
Par value = 1,000,000GBP
1. Calculate the Price of your Bond if the Yield-To-Maturity decreases from that stated by 50 basis points; briefly explain the issues around your answer.
2. Calculate the Macauley Duration of your Bond at the given Yield-To-Maturity.
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