Given a two-year, semi annual coupon paying bond with face value of $1000, coupon of 5% per
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Question:
Given a two-year, semi annual coupon paying bond with face value of $1000, coupon of 5% per annum and yield of 6% per annum:
Calculate the duration of the bond.
Use the duration measure to estimate the change expected in the bond price if the yield changes to 5.5% per annum.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781264101566
11th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Alan J. Marcus
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