Assume there is a bond with a: face/principal: $1,000 Maturity: 3 years Coupon: 6.00% Semi annual coupon
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Assume there is a bond with a: face/principal: $1,000 Maturity: 3 years Coupon: 6.00% Semi annual coupon payment. Yield to Maturity: 5.00%
Please provides the bonds:
(a)Price (to the penny!),
(b)Macaulay Duration (to 2 decimal places),
(c)Modified Duration (to 2 decimal places),
(d)in percentage terms estimated price change if rates rise 50 basis points (0.50%),
(e) estimated price change if rates fall 75 basis points (-0.75%).
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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