Question
Given the following 4% bond. Today's date:March 30 th , 2006 Maturity date:January 31 st , 2010 Next coupon payment date:January, 31 st , 2007
Given the following 4% bond.
Today's date:March 30th, 2006
Maturity date:January 31st, 2010
Next coupon payment date:January, 31st, 2007
Accrued Coupon ( millions):6356.16
Price:101.830
Yield moves up one basis point
Compute New Bond Price using Duration
102,429785 %
102,429793 %
102,465616 %
101,830000 %
Given the following 4% bond.
Today's date:March 30th, 2006
Maturity date:January 31st, 2010
Next coupon payment date:January, 31st, 2007
Accrued Coupon ( millions):6356.16
Price:101.830
Yield moves up one basis point
Compute New Bond Price using Full Recomputation
102,429785 %
102,429793 %
102,465616 %
101,830000 %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The detailed answer for the above question is provided below To compute the new bond price using duration we first need to calculate the Macaulay dura...
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Step: 2
Step: 3
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
