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*Need an answer by the end of the day* A 4% $2,000 six-year par-value bond with annual coupons is purchased for $1,895.26. It may be
*Need an answer by the end of the day*
A 4% $2,000 six-year par-value bond with annual coupons is purchased for $1,895.26. It may be called at any time. If interest rates fall by 1%, the bond should be called, while if they rise, it will not be called. Calculate the original yield I that an investor would receive if the bond were held to maturity, and then calculate the effective durations E.01(i,1) and E.02i(I, 2).
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