Question
You have two bonds with the following characteristics: Bond A Bond B Coupon8.0%9.0% YTM8.0%8.0% Years to maturity25 Par value$1,000$1,000 Price$1,000$1,040.55 a. what are the bond
You have two bonds with the following characteristics:
Bond ABond B
Coupon8.0%9.0%
YTM8.0%8.0%
Years to maturity25
Par value$1,000$1,000
Price$1,000$1,040.55
a. what are the bond durations?
b. if rates rise to 8.01%, what are the new prices for each bond?
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
