Question
Yield to maturity for a bond is 7%, and its Macauleys Duration (or, just Duration) is 8 years. The price of the bond is $965.
Yield to maturity for a bond is 7%, and its Macauleys Duration (or, just Duration) is 8 years.
The price of the bond is $965.
Coupon rate is $60 per year.
A. What is the modified duration?
B. What is the change in price, and new price for the bond if the yield to maturity would increase by 0.24%?
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
