Question: Hello, Need your help with the attached assignment. Thanks! Week 7 Individual Assignment - Managing Bond Portfolios Philip Morris has issued bonds that pay annually

Hello,Need your help with the attached assignment.Thanks! Week 7 Individual Assignment

Hello,

Need your help with the attached assignment.

Thanks!

Week 7 Individual Assignment - Managing Bond Portfolios Philip Morris has issued bonds that pay annually with the following characteristics: Coupon Yield to Maturity Maturity Macaulay Duration 8% 8% 15 years 10 years a. b. c. Calculate modified duration using the information above. Explain why modified duration is a better measure than maturity when calculating the bond's sensitivity to changes in interest rates. Identify the direction of change in modified duration if: 1. The coupon of the bond were 4%, not 8%. 2. The maturity of the bond were 7 years, not 15 years. Save all your solutions in a word file called "Week 7_Assignment_yourlastname&quot

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