Question
Suppose a bond has a face value of 1000, annual coupons at a rate of 6%, three years to maturity, and a yield to maturity
Suppose a bond has a face value of 1000, annual coupons at a rate of 6%, three years to maturity, and a yield to maturity of 8%.
(a) Calculate the price of the bond.
(b) Calculate the duration of the bond.
(c) Calculate the volatility of the bond.
(d) If the interest rate goes down by 0.50%, what is the change in the price of the bond?
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Financial Analysts Indispensable Pocket Guide
Authors: Ram Ramesh
1st Edition
0071361561, 978-0071361569
