Question: 6. Calculate the requested measures for bonds A and B assume each bond pays interest semiannually): 8% 8% 9% 8% Coupon Yield-to-Maturity Maturity (in years)

 6. Calculate the requested measures for bonds A and B assume

6. Calculate the requested measures for bonds A and B assume each bond pays interest semiannually): 8% 8% 9% 8% Coupon Yield-to-Maturity Maturity (in years) Par Price 100 100.000 100.000 100 104.055 (a) Price value of a basis point. (b) 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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