ABC Corp has issued a 10-year bond with a face value of $1,000, a coupon rate of
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Question:
ABC Corp has issued a 10-year bond with a face value of $1,000, a coupon rate of 5%, and semi-annual coupon payments. The bond is currently priced at $1,050. Calculate the following:
a) The semi-annual coupon payment.
b) The yield to maturity (YTM). c) The current yield.
d) The modified duration.
e) If interest rates increase by 1%, what would be the new price of the bond?
Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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