Question
Question: ABC Company is planning to issue a 10 percent, semiannualcoupon bond with five years remaining to maturity. The bond hasbeen priced (Par value) as
Question:
ABC Company is planning to issue a 10 percent, semiannualcoupon bond with five years remaining to maturity. The bond hasbeen priced (Par value) as Rs. 1,000. The bond has yield tomaturity of 10 percent. The company is interested in estimating theeffects of yield changes on the price of the bond.
Requirement:
Calculate the Modified Duration of the bond.
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
