Question
QUESTION Use the following information for a bond to calculate: a) the Macaulay Duration of the bond and; b) the Modified Duration of the bond
QUESTION
Use the following information for a bond to calculate:
a) the Macaulay Duration of the bond and;
b) the Modified Duration of the bond explaining the significance of modified duration
5 year maturity
Coupon of 10%
6% yield to maturity
Note: For the modified duration you may assume a change in yield of 1%
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Working Capital Management And Finance A HandBook For Bankers And Finance Managers
Authors: R.K.Gupta, Himanshu Gupta
4th Edition
1645875547, 9781645875543
