Question: Problem 13-01 three years if the bond's YTM is 14% and interest is paid semiannually. You may use Appendix C to answer the questions Calculate

Problem 13-01 three years if the bond's YTM is 14% and interest is paid semiannually. You may use Appendix C to answer the

Problem 13-01 three years if the bond's YTM is 14% and interest is paid semiannually. You may use Appendix C to answer the questions Calculate the Macaulay duration of an 8%, $1,000 par bond that matures a. Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places years b. Assuming the bond's YTM goes from 14% to 13.5%, calculate an estimate of the price change. Do not round intermediate calculations. Round your answer to three decimal places. Use a minus sign to enter negative value, if any Present Value of $1: APPENDIX 2% 5% 6% 8% 15% 16% Period % 3% 4% 7% 9% 10% 12% 14% .9804 9709 9615 .9524 9434 9346 9259 .9174 .8772 8696 8621 1 .9901 9091 8929 .9803 9612 3 .9706 9423 9158890 8638 8396 8163 7938 7722 7513 7118 67500 .6575 6407 .9610 .9238 9426 9246 9070 8900 8734 8573 8417 8264 7972 7695 7561 7432 8885 8548 8227 7921 7629 7350 7084 .6830 .6355 5921 5718 5523 8626 82197835 7473 7130 6806 .6499 6209 .5674 5194 4972 4761 4 5 9515 .9057 6 9327 8706 8375 7903 7462 7050 6663 6302 5963 5645 5066 4556 4323 4104 8131 7599.7107 6651 6227 5835 5470 5132 4523 3996 3759 3538 7894 7307 6768 .6274 5820 7664 7026.6446 5919 5439 5002 4604 7441 6756 6139 5584 5083 4632 4224 9420 8880 7 5403 .5019 4665 4039 3506 3269 3050 3606 3075 2843 2630 8 9235 8535 .9143 8368 .9053 8203 4241 3855 32202697 2472 10 2267 8963 8043 8874 7885 8787 7730 7224 64965847 5268 4751 7014 6246 5568 4970 4440 3971 3555 3186 2567 .2076 1869 1685 2875 2366 2149 1954 11 4289 3875 3505 12 6810 6006 5303 4688 4150 3677 3262 2897 2992 2633 4810 4173 .3624 3152 2745 2394 1625 13 2292 1821 1452 2046 1597 14 8700 7579 6611 5775 5051 4423 3878 .3405 .1413 1252 8613 .7430 15 6419 5553 1827 1401 1229 1079 16 6232 5339 4581 3936 3387 2919 2519 2176 1631 1069 0930 0929 0802 8528 7284 1229 7142 60505134 4363 3714 3166 2703 231 1978 1456 1078 17 8444 8360 7002 5874 4936 4155 3503 2959 2502 2120 5703 4746 3957 3305 5537 4564 3769 3118 2584 18 1799 1300 0946 0808 0691 0703 0596 2145 17841486 1037 .0728 0611 0514 2765 23171945 1635 1 161 0829 19 8277 6864 20 8195 6730 Present Value of an Annuity of $1 Per Period for n Periods: Number of 10% 12% 15% 16% Payments 2% 4% 5% 6% 7% 8% 9% 14% 09091 0.8696 0.8621 09615 0.9524 09434 0.9346 09259 09174 08929 0.8772 1 0.9901 0.9804 0.9709 16467 24018 23216 1.7591 1.7355 16901 1.6257 1.6052 2 1.9704 19416 19135 18861 18594 18334 1.8080 1.7833 2.8286 37171 2.7232 3.5460 26730 3465 2775 3.6299 24869 2.2459 3 2.9410 2.8839 3.8077 47135 2.6243 25771 2.5313 2.2832 28550 3.1699 2.7982 3.9020 3.3872 33121 3.2397 30373 29137 4 44518 3 9927 3.8897 3.7908 3.6048 3.433 3.3522 32743 5 4.8534 4.5797 4.3295 42124 41002 3.6847 4.0386 4.3436 5.0757 46229 44859 38887 3.7845 6 5.7955 56014 54172 52421 49173 4.7665 4.3553 4.1114 4.1604 6.7282 64720 6.2303 7.0197 6.0021 5.7864 5.5824 5 3893 52064 5.0330 48684 4.5638 4.2883 7 5.3349 4.9676 4.6389 7.6517 7.3255 8.1622 6.7327 74353 6.4632 6.2098 5.9713 5.7466 5.5348 4.4873 8 8 5660 7.7861 7.1078 68017 6.5152 62469 5.9952 5.7590 5.3282 4.9464 4.7716 4.6065 9 7.7217 7.3601 7.0236 6.7101 6.4177 61446 56502 52161 5.0188 48332 10 9.4713 89826 85302 8.1109 10.3676 8.7605 7.8869 7.4987 6.8052 64951 5.4527 5.2337 5.0286 9.7868 9 2526 8.3064 7.1390 59377 11 7.5361 7.1607 68137 6.1944 5.6603 5.4206 12 11.2551 10.5753 9.9540 93851 8.8633 9.3936 83838 7.9427 51971 10 6350 99856 88527 8.3577 79038 7.4869 7.1034 64235 5.8424 5.5831 5.3423 13 12.1337 113484 5.7245 10 5631 9.8986 7.7862 7.3667 76061 66282 6.0021 5 4675 13.0037 12.1062 11.2961 9 2950 8.7455 82442 14 9.1079 8.0607 68109 6.1422 5.8474 15 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 85595 55755 5.6685 16 12.5611 116523 10.8378 101059 9.4466 8.8514 8.3126 78237 69740 6.2651 5.9542 14.7179 135777 15.5623 14 2919 14 9920 13.1661 13.7535 9.7632 10.059 10.3356 91216 8.5436 8.0216 7.1196 63729 6.0472 5.7487 17 12.1657 11.274 104773 12 6593 10 8276 131339 12 0853 11581 114699 64674 6.1280 18 16.3983 11.6896 93719 8.7556 8.2014 7.2497 5.8178 9.6036 83649 73658 65504 6.1982 5.8775 7.2260 i5.6785 14 3238 8.9501 19 20 18.0456 16.3514 14 8775 13.5903 12 4622 10.5940 9.8181 9.1285 8.5136 74694 66231 6.2593 5.9288 9.0770 9.4269 6.464 11.6536 106748 98226 78431 6.8729 6.0971 25 22.0232 19.5235 174131 15.6221 14.0939 12 7834 11.2578 6.5660 6.1772 30 25.8077 22 3965 19.6004 17.2920 15.3725 13.7648 12.4090 10.2737 80552 7.0027 27.3555 31.4236 257298 34 7609 9.779 7.1050 6.6418 6.2335 23.1148 19.7928 21.4822 226235 17.1591 150463 13 3317 119246 10.7574 82438 40 32.8347 39.1961 18.2559 15.7619 13 8007 122335 12.3766 10 9617 9.9148 8.3045 7.1327 6.6605 6.2463 50 60 27.6756 16 1614 9.9672 6.6651 62402 44.9550 18.9293 14.0392 11.0480 8.3240 7.1401 Problem 13-01 three years if the bond's YTM is 14% and interest is paid semiannually. You may use Appendix C to answer the questions Calculate the Macaulay duration of an 8%, $1,000 par bond that matures a. Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places years b. Assuming the bond's YTM goes from 14% to 13.5%, calculate an estimate of the price change. Do not round intermediate calculations. Round your answer to three decimal places. Use a minus sign to enter negative value, if any Present Value of $1: APPENDIX 2% 5% 6% 8% 15% 16% Period % 3% 4% 7% 9% 10% 12% 14% .9804 9709 9615 .9524 9434 9346 9259 .9174 .8772 8696 8621 1 .9901 9091 8929 .9803 9612 3 .9706 9423 9158890 8638 8396 8163 7938 7722 7513 7118 67500 .6575 6407 .9610 .9238 9426 9246 9070 8900 8734 8573 8417 8264 7972 7695 7561 7432 8885 8548 8227 7921 7629 7350 7084 .6830 .6355 5921 5718 5523 8626 82197835 7473 7130 6806 .6499 6209 .5674 5194 4972 4761 4 5 9515 .9057 6 9327 8706 8375 7903 7462 7050 6663 6302 5963 5645 5066 4556 4323 4104 8131 7599.7107 6651 6227 5835 5470 5132 4523 3996 3759 3538 7894 7307 6768 .6274 5820 7664 7026.6446 5919 5439 5002 4604 7441 6756 6139 5584 5083 4632 4224 9420 8880 7 5403 .5019 4665 4039 3506 3269 3050 3606 3075 2843 2630 8 9235 8535 .9143 8368 .9053 8203 4241 3855 32202697 2472 10 2267 8963 8043 8874 7885 8787 7730 7224 64965847 5268 4751 7014 6246 5568 4970 4440 3971 3555 3186 2567 .2076 1869 1685 2875 2366 2149 1954 11 4289 3875 3505 12 6810 6006 5303 4688 4150 3677 3262 2897 2992 2633 4810 4173 .3624 3152 2745 2394 1625 13 2292 1821 1452 2046 1597 14 8700 7579 6611 5775 5051 4423 3878 .3405 .1413 1252 8613 .7430 15 6419 5553 1827 1401 1229 1079 16 6232 5339 4581 3936 3387 2919 2519 2176 1631 1069 0930 0929 0802 8528 7284 1229 7142 60505134 4363 3714 3166 2703 231 1978 1456 1078 17 8444 8360 7002 5874 4936 4155 3503 2959 2502 2120 5703 4746 3957 3305 5537 4564 3769 3118 2584 18 1799 1300 0946 0808 0691 0703 0596 2145 17841486 1037 .0728 0611 0514 2765 23171945 1635 1 161 0829 19 8277 6864 20 8195 6730 Present Value of an Annuity of $1 Per Period for n Periods: Number of 10% 12% 15% 16% Payments 2% 4% 5% 6% 7% 8% 9% 14% 09091 0.8696 0.8621 09615 0.9524 09434 0.9346 09259 09174 08929 0.8772 1 0.9901 0.9804 0.9709 16467 24018 23216 1.7591 1.7355 16901 1.6257 1.6052 2 1.9704 19416 19135 18861 18594 18334 1.8080 1.7833 2.8286 37171 2.7232 3.5460 26730 3465 2775 3.6299 24869 2.2459 3 2.9410 2.8839 3.8077 47135 2.6243 25771 2.5313 2.2832 28550 3.1699 2.7982 3.9020 3.3872 33121 3.2397 30373 29137 4 44518 3 9927 3.8897 3.7908 3.6048 3.433 3.3522 32743 5 4.8534 4.5797 4.3295 42124 41002 3.6847 4.0386 4.3436 5.0757 46229 44859 38887 3.7845 6 5.7955 56014 54172 52421 49173 4.7665 4.3553 4.1114 4.1604 6.7282 64720 6.2303 7.0197 6.0021 5.7864 5.5824 5 3893 52064 5.0330 48684 4.5638 4.2883 7 5.3349 4.9676 4.6389 7.6517 7.3255 8.1622 6.7327 74353 6.4632 6.2098 5.9713 5.7466 5.5348 4.4873 8 8 5660 7.7861 7.1078 68017 6.5152 62469 5.9952 5.7590 5.3282 4.9464 4.7716 4.6065 9 7.7217 7.3601 7.0236 6.7101 6.4177 61446 56502 52161 5.0188 48332 10 9.4713 89826 85302 8.1109 10.3676 8.7605 7.8869 7.4987 6.8052 64951 5.4527 5.2337 5.0286 9.7868 9 2526 8.3064 7.1390 59377 11 7.5361 7.1607 68137 6.1944 5.6603 5.4206 12 11.2551 10.5753 9.9540 93851 8.8633 9.3936 83838 7.9427 51971 10 6350 99856 88527 8.3577 79038 7.4869 7.1034 64235 5.8424 5.5831 5.3423 13 12.1337 113484 5.7245 10 5631 9.8986 7.7862 7.3667 76061 66282 6.0021 5 4675 13.0037 12.1062 11.2961 9 2950 8.7455 82442 14 9.1079 8.0607 68109 6.1422 5.8474 15 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 85595 55755 5.6685 16 12.5611 116523 10.8378 101059 9.4466 8.8514 8.3126 78237 69740 6.2651 5.9542 14.7179 135777 15.5623 14 2919 14 9920 13.1661 13.7535 9.7632 10.059 10.3356 91216 8.5436 8.0216 7.1196 63729 6.0472 5.7487 17 12.1657 11.274 104773 12 6593 10 8276 131339 12 0853 11581 114699 64674 6.1280 18 16.3983 11.6896 93719 8.7556 8.2014 7.2497 5.8178 9.6036 83649 73658 65504 6.1982 5.8775 7.2260 i5.6785 14 3238 8.9501 19 20 18.0456 16.3514 14 8775 13.5903 12 4622 10.5940 9.8181 9.1285 8.5136 74694 66231 6.2593 5.9288 9.0770 9.4269 6.464 11.6536 106748 98226 78431 6.8729 6.0971 25 22.0232 19.5235 174131 15.6221 14.0939 12 7834 11.2578 6.5660 6.1772 30 25.8077 22 3965 19.6004 17.2920 15.3725 13.7648 12.4090 10.2737 80552 7.0027 27.3555 31.4236 257298 34 7609 9.779 7.1050 6.6418 6.2335 23.1148 19.7928 21.4822 226235 17.1591 150463 13 3317 119246 10.7574 82438 40 32.8347 39.1961 18.2559 15.7619 13 8007 122335 12.3766 10 9617 9.9148 8.3045 7.1327 6.6605 6.2463 50 60 27.6756 16 1614 9.9672 6.6651 62402 44.9550 18.9293 14.0392 11.0480 8.3240 7.1401

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