Question: please show full work..Thanks! Use discrete annual compounding for question 1. Yield to maturity for both bonds 5% What are the current prices of the
please show full work..Thanks!
Use discrete annual compounding for question 1. Yield to maturity for both bonds 5% What are the current prices of the bonds? What is the duration of each of the bonds? If the yield to maturity of both bonds were to increase 75 basis points, what would be the approximate percentage change in the prices of both bonds? (Do not recalculate the prices of the two bonds.) Assume continuous compounding. If the yield to maturity on a debt contract is 4.5%, what is the present value of a dollar, $1, received 1 year in the future
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