Company ABC has a semiannual corporate bond with 8% coupon rate, 5 years maturity and 10% bond

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Company ABC has a semiannual corporate bond with 8% coupon rate, 5 years maturity and 10% bond yield. You have estimated the Macaulay duration of the bond is 4.18 years. If yield to maturity decreases by 20 basis points.

What is the percentage change in the bond price?

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-1337395250

15th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Jul 10, 2023 01:12 AM

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Company ABC has a semiannual corporate bond with 8% coupon rate, 5 years maturity and 10% bond

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Fundamentals of Financial Management

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