Hi,

Can someone please help me with the below?

A bond with a face value of $1,000 pays 6% annual coupon on a semiannual basis. The maturity is 5 years. The Yield to Maturity is 12%.

I have calculated (and confirmed) the duration for the bond above to be 4.288318 and the bond price to be $767.71. The question I have is regarding the below, when I adjust the coupon rate the figures for duration I get are different from those below, however the values below should be correct. Can someone tell me how I should adjust the duration for changes in the coupon rate?

What happens to duration if coupon rate increases? Create a table that shows bond duration against coupon rate.

Coupon Rate Duration

1% 4.844419 2% 4.707096 3% 4.584994 4% 4.475716 5% 4.377342 6% 4.288318 7% 4.207371 8% 4.13345 9% 4.065678 10% 4.003318 11% 3.945747 12% 3.892434 13% 3.842923 14% 3.796821 15% 3.753789 16% 3.713529 17% 3.675781

Thank you