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Find the Macaulay duration and the modified duration of a 15-year, 9.0% corporate bond priced to yield 7.0%. According to the modified duration of this

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Find the Macaulay duration and the modified duration of a 15-year, 9.0% corporate bond priced to yield 7.0%. According to the modified duration of this bond, how much of a price change would this bond incur if market yields rose to 8.0% ? Using annual compounding, calculate the price of this bond in one year if rates do rise to 8.0%. How does this price change compare to that predicted by the modified duration? Explain the difference. Find the Macaulay duration and the modified duration of a 15-year, 9.0% corporate bond priced to yield 7.0%. According to the modified duration of this bond, how much of a price change would this bond incur if market yields rose to 8.0% ? Using annual compounding, calculate the price of this bond in one year if rates do rise to 8.0%. How does this price change compare to that predicted by the modified duration? Explain the difference

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