Question 15

Bond ABC has maturity of 1.5 years, coupon rate of 6% (interest paid semi-annually), and YTM of 10%.

Calculate the actual Macaulay duration of this bond in years. (Round to 4 decimal places)

Question 16

Calculate the actual Modified duration of this bond in years. (Round to 4 decimal places)

Question 17

Use the bond's duration to estimate its dollar price change if interest rates increase by 80 bsp. (Enter a percentage number, round to 4 decimal places, beware of the signs (+/-))

Question 183 pts

Then calculate the new price based on duration-predicted price change. (Round to 4 decimal places)

Question 19

The actual dollar price be [ Select ] ["Higher", "Lower", "The same"] as the duration-predicted price calculated in the last question?