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Consider a bond with a 7% annual coupon and a face value of $1,000. Calculate the bond price and duration & show your work. Calculate
- Consider a bond with a 7% annual coupon and a face value of $1,000. Calculate the bond price and duration & show your work. Calculate the duration
| Years to Maturity | Interest rate | Bond Price | Duration |
| 4 | 5 |
|
|
| 4 | 7 |
|
|
| 5 | 7 |
|
|
| 8 | 7 |
|
|
What relationship do you observe between yield to maturity and the current market value? What is the relationship between YTM and duration?
3. Consider a bond with a 7% annual coupon and a face value of $1,000. Calculate the bond price and duration & show your work. Calculate the duration Years to Maturity Interest rate Bond Price Duration 4 5 4 7 5 7 8 What relationship do you observe between yield to maturity and the current market value? What is the relationship between YTM and duration? 7Step by Step Solution
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis Gapenski PhD
3rd Edition
1567932320, 978-1567932324
