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From book financial markets and Institutions 7. Consider the following. (LG 22-3) a. What is the duration of a two-year bond that pays an annual

From book financial markets and Institutions
7. Consider the following. (LG 22-3) a. What is the duration of a two-year bond that pays an annual coupon of 10 percent and whose current yield to maturity is 14 percent? Use $1,000 as the face value. b. What is the expected change in the price of the bond if interest rates are expected to decline by 0.5 percent? 11 (

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