You own a corporate bond that carries a 5 8 percent coupon rate and pays $ 10,000 at maturity in exactly two years The current market yield on the bond is 6 1 percent Coupon interest is paid semiannually and the market price is $ 9,944 32 a Calculate the bonds Macaulays duration and modified durati...

The current price of the bond is 994432 a Macaulays duration Or 1915 years ...

You own a corporate bond that carries a 5.8 percent coupon rate and pays $ 10,000 at

Question:

You own a corporate bond that carries a 5.8 percent rate and pays $ 10,000 at in exactly two years. The current market yield on the bond is 6.1 percent. interest is paid semiannually and the market price is $ 9,944.32.
a. Calculate the bond’s Macaulay’s duration and modified duration.
b. If the market rate falls by 1 percent, what is the estimated impact on the bond’s price? Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...