Question: MODULE CODE: 44-700131-BF-2020 QUESTION 1 ( 6 marks) Use the following information for a bond to calculate: a) the Macaulay Duration of the bond and;

MODULE CODE: 44-700131-BF-2020 QUESTION 1 ( 6 marks) Use the following information for a bond to calculate: a) the Macaulay Duration of the bond and; b) the Modified Duration of the bond explaining the significance of modified duration 5 year maturity Coupon of 10% 6% yield to maturity Note: For the modified duration you may assume a change in yield of 1% Focus

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