Question
Victoria bond (Semi-annual) has 19 years till maturity with a coupon rate of 8 percent and a yield to maturity of 7 percent. What is
Victoria bond (Semi-annual) has 19 years till maturity with a coupon rate of 8 percent and a yield to maturity of 7 percent.
What is Macaulays duration?
What is the modified duration?
Assume the yield to maturity increases by 3 %. What is the new price of the bond using duration?
Assume the yield to maturity increases by 3 %. What is the new price of the bond using the bond price formula?
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Financial Accounting
Authors: Libby, Short
6th Edition
978-0073526881
