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Question 3 a) Find the duration of a bond with a 4-year remaining maturity. Assume that the coupon rate is 8% paid annually and
Question 3 a) Find the duration of a bond with a 4-year remaining maturity. Assume that the coupon rate is 8% paid annually and the yield to maturity is 10%. b) If the yield to maturity decreases to 7%, using the duration in part (a) find the change in the bond price.
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
