Question
Calculate the Macaulay duration of a 10%, $1,000 par bond that matures in three years if the bond's YTM is 14% and interest is paid
Calculate the Macaulay duration of a 10%, $1,000 par bond that matures in three years if the bond's YTM is 14% and interest is paid semiannually. You may use Appendix C to answer the questions.
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Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places.
years
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Assuming the bond's YTM goes from 14% to 12.5%, 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.
%
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Banking With Integrity The Winners Of The Financial Crisis
Authors: Dr Heiko Spitzeck , Dr Michael Pirson, Dierksme , Dr. Heiko Spitzeck , Prof. Claus Dierksmeier, Dr. Michael Pirson
1st Edition
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