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you may disregard Exercise #6. please just help me with exercise #7 Practical Application: Consider the following corporate and muni bond info from Thursday 2/11/2021
you may disregard Exercise #6. please just help me with exercise #7
Practical Application: Consider the following corporate and muni bond info from Thursday 2/11/2021 (Settlement is T+2 i.e. 2/15/2021). All the bonds are semiannual. EXERCISE #6: Compute the approx yield to call on the Salt Lake Arpt 2047. Assume 61/2 years to call. YTC=% EXERCISE #7: Compute the Mod Duration of the EastmanChem 2044 bond by "blipping". [23 1/2 years to maturity] That is, compute three prices: at the current ytm, and by changing the ytm by 0.05% up and down. Then follow the ModR definition. Rescale correctly. ModD=%/y(P+5P5)/P/(y+5y5) Practical Application: Consider the following corporate and muni bond info from Thursday 2/11/2021 (Settlement is T+2 i.e. 2/15/2021). All the bonds are semiannual. EXERCISE #6: Compute the approx yield to call on the Salt Lake Arpt 2047. Assume 61/2 years to call. YTC=% EXERCISE #7: Compute the Mod Duration of the EastmanChem 2044 bond by "blipping". [23 1/2 years to maturity] That is, compute three prices: at the current ytm, and by changing the ytm by 0.05% up and down. Then follow the ModR definition. Rescale correctly. ModD=%/y(P+5P5)/P/(y+5y5) Step by Step Solution
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