Question
PLEASE SHOW STEP BY STEP CALCULATIONS AND SOULTION. THANK YOU 2) a. What is the duration of a 5-year 8% annual coupon bond with a
PLEASE SHOW STEP BY STEP CALCULATIONS AND SOULTION. THANK YOU
2) a. What is the duration of a 5-year 8% annual coupon bond with a par value of $100 if the prevailing continuously compounded interest rate is 10%?
b. What is the duration of a 5-year 12% annual coupon bond with a par value of $100 if the prevailing continuously compounded interest rate is 10%? What does this tell you about the relationship between coupon rates and duration? Comment.
c. What is the duration of a 5-year 8% annual coupon bond with a par value of $100 if the prevailing continuously compounded interest rate is 12%? What does this tell you about the relationship between interest rates and duration? Comment.
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Contemporary Issues In Development Finance
Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi
1st Edition
1138324329, 978-1138324329
