Calculate the duration of a five-year bond with a face value of $1,000 and a coupon rate
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Calculate the duration of a five-year bond with a face value of $1,000 and a coupon rate of 8%. Assume that the current interest rates are 10%. What will your answer be if the current interest rates fall to 7%? Show all your calculations.
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To calculate the duration of a bond we can use the following formula Duration Sum of Present value o...View the full answer
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Related Book For
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
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