Question: (1) Calculate the Macaulay duration of the following bond: Annual coupon rate: 8% (coupons are paid semi-annually); YTM: 6%; Maturity: 1.5 years; Par value: $100

(1) Calculate the Macaulay duration of the following bond: Annual coupon

(1) Calculate the Macaulay duration of the following bond: Annual coupon rate: 8% (coupons are paid semi-annually); YTM: 6%; Maturity: 1.5 years; Par value: $100 (2) What the dollar price change due to duration when the bond's yield to maturity decreases from 6% to 5%

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