The bond in Example 10.11 has a modified duration of 8.27 years. What is its dollar value
Question:
The bond in Example 10.11 has a modified duration of 8.27 years. What is its dollar value of an 01? What is its yield value of a 32nd?
Example 10.11
A bond has a yield to maturity of 7 percent. It matures in 12 years, and its coupon rate is 6 percent. What is its modified duration?
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We must first calculate the price of this bond using the bond pricing formula provided earlier in th...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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