1. A bond pays 5.36% semi-annual coupon for 6 years and is priced at $100. Calculate the modified duration and convexity of this bond using approximate formulas (use 10 basis point change in yield). What is Macaulay's duration of this bond (do not use table of cash flows or the first derivative formula).

Answer rating: 100% (QA)

To calculate the modified duration using the approximate formula we can use the following formula Mo... View the full answer