Question
Calculate the Macaulay duration of an 11%, $1,000 par bond that matures in three years if the bond's YTM is 12% and interest is paid
Calculate the Macaulay duration of an 11%, $1,000 par bond that matures in three years if the bond's YTM is 12% and interest is paid semiannually.
Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places.
years
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.
%
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
10th Edition
053875446X, 978-0538754460
