Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

calculate the macaulay duration of 10%, $1,000 per bond that matures in 3 years if the bonds YTM is 12%, and interest is paid semi-annually.

image text in transcribed

calculate the macaulay duration of 10%, $1,000 per bond that matures in 3 years if the bonds YTM is 12%, and interest is paid semi-annually. you may use appendix c to answer the questions.

calculate the bonds modified duration. do not round intermediate calculations. round your answers to two decimal places

assuming the bombs YTM goes from 12% to 11%, calculate an estimate of price change. do not round intermediate calculations. round your answer to three decimal places. use a minus sign to enter negative value if any.

Calculate the Macaulay duration of a 10%, $1,000 par bond that matures in three years if the bond's YIM IS 12% and interest is paid semiannually. You may use Appendix C to answer the questions. a. Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places 2.71 years b. Assuming the bond's YTM goes from 12% to 11.0%, calculate an estimate of the price change. Do not round intermediate calculations, Round your answer to three decimal places. Use a minus sign to enter negative value, if any. %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Eugene F. Brigham, Phillip R. Daves

8th Edition

0324258917, 9780324258912

More Books

Students also viewed these Finance questions