Question
Consider a bond with a face value of $200. Suppose this bond pays annual coupon for 7 years at 5%. Assume a yield to maturity
Consider a bond with a face value of $200. Suppose this bond pays annual coupon for 7 years at 5%. Assume a yield to maturity of 7%.
At what price should this bond be sold
Calculate the duration for this bond and the modified duration.
What do you expect to the duration if the coupon payments increase to 9%?
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Global Corporate Finance A Focused Approach
Authors: Kenneth Kim, Suk Kim
3rd Edition
9811207119, 9789811207112
