Path:p Words QUESTION 20 A bond has a Macnulay's duration of 8.8 years. If rates changes from 6.5% to 4.1%, what will be the Yuge change bonds price? Please write the answer in TWO decimal places and NOT PERCENTAGE. AICOTIAMO QUESTION 22 You purchase a 9-year bond at $97 per $100 par value that pays a 7.6% coupon per annum. Further assure that bond pays coupon semi-annually, and coupons can be reinvested at 4.1% semi-annually for first 6 years. The yield to maturity of a 2 years comparable bond after 5 years is 6%. If you hold the bond for 6 years, what will be your total return? Please write the answer in four decimal places and NOT PERCENTAGE. QUESTION 93 DUR . Ai %AP %Ai AP - Duration(Ai/(1 + i)]P CF(t) (1 + i) CF *(1 + i) CF(t) *(1 + i) PV of the security D Modified duration = Macaulay's duration/(1+i) AP/P 2 - Duration/(1+i)]Ai Effective Annual Return = (1+"-1 Future value of coupons + interest on coupons ((1+r) - 1) Holding period return = CF -1 bo - CF (1-a+r)d) + + +r) B. Discount rate ide: idr Pr - P. 360 PA h C. Money market 360-day rate, i360 P.-P, 360 P. h D. Bond equivalent 365-day rate, 136 Oribe ibe P.-P. 365 P. E. Effective annual interest rate: i 1+ 1 365/h) Modified duration= Macaulay's Duration 1 +r Call Price-P.. Effective Duration - Po(r+ -) P.--P+ Por-r-) MVL DGAP = WADA - WADLX MVA Ar AEVE = -DGAP MVA 1 + r GAP=RSAS - RSLS 365/h i = - [14