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Can someone plase help with c. modified duration using the formula? Problem 2. Betty and Bob buy a 2 year bond with face and maturity
Can someone plase help with c. modified duration using the formula?
Problem 2. Betty and Bob buy a 2 year bond with face and maturity value of $100 and coupons of $6, 14, 9, and 5 in that order and is priced to yield 16% per annum compounded semiannually. a Compute the price correct to 2 places after the decimal point. b Compute the dollar duration, correct to 2 places after the decimal place. You c Compute the modified duration, correct to 2 places after the decimal place. d Compute the Macaulay duration, correct to 2 places after the decimal point, by e Compute the Macaulay duration, correct to 2 places after the decimal point, by must use calculus. State your answer in years. using the previous results. State your answer in years. using the definition of Macaulay duration. Compare the results of parts d andStep by Step Solution
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