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Consider a bond with a 7.5% annual coupon rate and a face value of $1,000. Calculate the bond price and duration & show your work.
- Consider a bond with a 7.5% 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 |
| 4 |
| 5 |
|
|
| 5 |
| 6 |
|
|
| 6 |
| 7 |
|
|
| 7 |
| 9 |
|
|
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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Catechism Of Money
Authors: Joseph P. Root
1st Edition
1377114929, 978-1377114927
