Assume there is a bond with a: face/principal: $1,000 Maturity: 3 years Coupon: 6.00% Semi annual coupon

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Assume there is a bond with a: face/principal: $1,000 Maturity: 3 years Coupon: 6.00% Semi annual coupon payment. Yield to Maturity: 5.00%

Please provides the bonds:

(a)Price (to the penny!),

(b)Macaulay Duration (to 2 decimal places),

(c)Modified Duration (to 2 decimal places),

(d)in percentage terms estimated price change if rates rise 50 basis points (0.50%),

(e) estimated price change if rates fall 75 basis points (-0.75%).

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Apr 27, 2023 07:25 AM

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Assume there is a bond with a: face/principal: $1,000 Maturity: 3 years Coupon: 6.00% Semi annual coupon

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a The price of the bond can be calculated as the present value of all future cash flows discounted a... View the full answer

Foundations of Financial Management

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