1000 euro par value, 3% annual-coupon bond was issued 1.03.2015 and has 30 year maturity
You purchased the bond on 20.10.2021
Market interest rate for similar securities is 2,8%
Calculate following:
a. Clean price
b. Acrrued interest
c. Full price
d. Macaulay duration
e. Modified duration
If interest rate in the market declines by 50 bps
g. Calculate new price with duration and test it with new price

Answer rating: 100% (QA)

a Clean price The clean price of the bond is the present value of all future cash flows from the bond discounted at the current market rate of 28 The ... View the full answer