Question: 1 . Duration : Calculate the requested measures for bonds A and B Iassume each bond pays interest Semiannually ) . A B} Coupon 890

1 . Duration : Calculate the requested measures for bonds A

1 . Duration : Calculate the requested measures for bonds A and B Iassume each bond pays interest Semiannually ) . A B} Coupon 890 Yield - to - Maturity Maturity ( in 2. 5 YearS* Par 100 100 Price 10.0.010.0 104. 05 5 ( a ) Price value of a basis point . ( 6 ) Macaulay duration . ( C ) Modified duration . ( d) Calculate the actual price of the two bonds for a 100 basis point increase in interest rates . ( e) Using duration , estimate the price of the bonds for a 100 basis point increase in interest rates

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