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To finance a new Fab in Arizona, TSM issued an 8-year, 5.75% coupon bond with semi-annual coupon payments. The current YTM is 6.5%. What

To finance a new Fab in Arizona, TSM issued an 8-year, 5.75% coupon bond with semi-annual coupon payments. The current YTM is 6.5%. What is the duration of this bond and how much will the price change if YTM goes up by 1% using the duration approximation method you've learned in this class?

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To calculate the duration of a bond we need to use the formula Duration 1 YTM1 C11 YTM C21 YTM2 Cn1 ... blur-text-image

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