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Treasury bonds with a face value of 1 million won, maturity of 3 years, interest rate of 5%, interest payment once a year, discount rate
Treasury bonds with a face value of 1 million won, maturity of 3 years, interest rate of 5%, interest payment once a year, discount rate of 6%.
1. How many years is the Macaulay Duration of the above bonds?
2. How many years is the modified duet of the above bond?
3. If the rate of interest is 10% (one-time annual payment), face value is 10,000 won, the present price of the bond is 9,600 won, and the price of the bond is 9,800 won after a year, what is the current yield rate, expected capital gain rate and expected return rate of the bond?
4. Can I buy a laptop with a present value of 1,020,000 won if I deposit 1,000,000 won in one-year bank deposits at a real interest rate of 2 percent and an expected inflation of 3 percent?
Same fluctuation as inflation rate)
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