Question
Calculate the duration and volatilities of9% coupon, 5-year bonds, which yield is 8%. Then find the impact of a 0.5% increase and decrease in interest
Calculate the duration and volatilities of9% coupon, 5-year bonds, which yield is 8%. Then find the impact of a 0.5% increase and decrease in interest rates on thevalue of the bond (evaluate the bond at 8.5% and 9.5%). Use this to compute itsvolatility and compare to the original volatility calculated.
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
