A 10-year 15% coupon bond with a face value of $2000 has cash payments identical to zero

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A 10-year 15% coupon bond with a face value of $2000 has cash payments identical to zero coupon bonds of $200 each year.

a. Calculate the duration at 15% interest rate.

b. Calculate the duration when interest rate increase to 20%.

c. What is the effect on the duration of coupon bond when interest rate increased from 15% to 20%.

Note. Present your answer in a tabular form.

Related Book For answer-question

Engineering Mechanics Statics & Dynamics

ISBN: 9780134895154

15th Edition

Authors: Russell C. Hibbeler

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Posted Date: Mar 02, 2023 01:04 AM

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A 10-year 15% coupon bond with a face value of $2000 has cash payments identical to zero

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Engineering Mechanics Statics & Dynamics

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