2. A bond with $1,000 face value, 6% coupon, market interest rates of %7, and three years...
Fantastic news! We've Found the answer you've been seeking!
Question:
2. A bond with $1,000 face value, 6% coupon, market interest rates of %7, and three years to maturity.
a. Calculate the duration of the bond
b. Assume that market interest rates increased to 10%, re-calculate the duration of the bond
c. Assume that the market interest rates increased to 15%, re-calculate the duration of the bond
d. Comment generally on the relationships between the interest rates, coupons, and duration
Expert Answer:
Posted Date:
