Question
Find the duration of a 5% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of
Find the duration of a 5% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7 percent?
What is the duration of the yield to maturity increases to 8%?
What is the percentage change in the bond’s price as predicted by the duration?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
