problem IV: Duration You are interested in purchasing a newly issued $1,000 par, 20-year maturity, 8.00% annual coupon bond. The bond has a duration of 7.5367 years (i.e., disregard the modified duration figure). You believe that the YTM will rise to 8.40% during the first year you own the bond. Settlement Maturity Duration FV N Years * Frequency (i.e., semiannual) 1/1/2018 1/1/2028 7.536728259 (1,000) 20 0.08 0.08 2 $(40) $1,000 0.40% Coupon rate Yield Frequency Pmt PV Expect. Incr.in Mrkt Yield Payments per Year problem IV: Duration You are interested in purchasing a newly issued $1,000 par, 20-year maturity, 8.00% annual coupon bond. The bond has a duration of 7.5367 years (i.e., disregard the modified duration figure). You believe that the YTM will rise to 8.40% during the first year you own the bond. Settlement Maturity Duration FV N Years * Frequency (i.e., semiannual) 1/1/2018 1/1/2028 7.536728259 (1,000) 20 0.08 0.08 2 $(40) $1,000 0.40% Coupon rate Yield Frequency Pmt PV Expect. Incr.in Mrkt Yield Payments per Year