Question
There is a one-year coupon bond($1,000 face value) which pays interest quarterly. The coupon rate is 6% and YTM is 8%. A. What is Modified
There is a one-year coupon bond($1,000 face value) which pays interest quarterly. The coupon rate is 6% and YTM is 8%.
A. What is Modified duration?
B. Lets assume the new YTM is 8.8%. What is percentage price change due to duration?
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Principles Of Managerial Finance
Authors: Chad J. Zutter, Scott Smart
16th Edition
0136945880, 978-0136945888
