Question
Consider a bond with a 5% annual coupon rate and a face value of $1,000. Calculate the bond price and duration & show your work.
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Consider a bond with a 5% annual coupon rate and a face value of $1,000. Calculate the bond price and duration & show your work.
Years to Maturity Interest rate Bond Price Duration
45 56 67
78 What relationship do you observe between yield to maturity and the current market value? What is the relationship between YTM and duration?
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Public Finance In Canada
Authors: Harvey S. Rosen, Wen, Snoddon
4th Canadian Edition
0070071837, 978-0070071834
