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Show your work on the answer table. When showing equations, insert the values used. Show prices to the nearest cent ($XX.XX) and effective duration and
Show your work on the answer table. When showing equations, insert the values used. Show prices to the nearest cent ($XX.XX) and effective duration and convexity to the 4th decimal place (YY.YYYY). Bond: 7.5% Coupon--Compounded Semiannually $100 FACE Value 18 years until maturity Find the following if the original stated annual interest rate is 9%: PART A: Calculations 1. Original Price; 2. Duration; 3. Modified Duration, and 4. Convexity Values Price Equation with values inserted Duration Modified Duration Convexity
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