You are given the following information about a 30-year bond: The par value is 2000. The...
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You are given the following information about a 30-year bond: The par value is 2000. The redemption value is 2250. i) ii) iii) iv) v) vi) Calculate the modified duration of the bond, based on the yield rate. (A) (B) (C) (D) (E) Coupons are paid annually. The annual coupon rate is twice the annual yield rate. The purchase price is 3609.29. Based on the yield rate, the Macaulay duration of the bond is 14.41 years. 12.40 years 13.07 years 13.71 years 14.41 years 15.15 years You are given the following information about a 30-year bond: The par value is 2000. The redemption value is 2250. i) ii) iii) iv) v) vi) Calculate the modified duration of the bond, based on the yield rate. (A) (B) (C) (D) (E) Coupons are paid annually. The annual coupon rate is twice the annual yield rate. The purchase price is 3609.29. Based on the yield rate, the Macaulay duration of the bond is 14.41 years. 12.40 years 13.07 years 13.71 years 14.41 years 15.15 years
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i Par value 2000 ii Redemption value 2250 iii Coupons paid annually iv Coupon rate 2 Yield rate ... View the full answer
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Posted Date:
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