Question
Find the duration, modified duration, approx. value of the bond given a 1% and a 1/4% up or down change in rates. Check with the
Find the duration, modified duration, approx. value of the bond given a 1% and a 1/4% up or down change in rates. Check with the bond value calculation on your calculator. The bond is a $1000 par, 8% annual coupon bond with 5 years to maturity. The required rate of return on the bond is 9%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles Of Investments
Authors: Alan Marcus, Zvi Bodie, Michael Drew, Anup Basu, Alex Kane
1st Edition
0071012389, 978-0071012386
