Mart Corporation bonds have a $1,000 face value and will mature in four years. The bonds...

 

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Mart Corporation bonds have a $1,000 face value and will mature in four years. The bonds have a 7 percent coupon rate. Interest is paid annually, and the required rate of return is 6 percent for these bonds. a) What is the Macaulay duration of the Mart corporate bonds? b)lf interest rates increase 50 basis points, what will be the approximate price change in dollars ($) for the Mart bond? please answer in 1 hour Mart Corporation bonds have a $1,000 face value and will mature in four years. The bonds have a 7 percent coupon rate. Interest is paid annually, and the required rate of return is 6 percent for these bonds. a) What is the Macaulay duration of the Mart corporate bonds? b)lf interest rates increase 50 basis points, what will be the approximate price change in dollars ($) for the Mart bond? please answer in 1 hour

Answer rating: 100% (QA)

To calculate the Macaulay duration of the Mart corporate bonds we first need to calculate the presen... View the full answer