Question: Stan Corp, issued bonds with a $ 1 0 0 , 0 0 0 face value. The coupon rate is 4 . 2 0 %

Stan Corp, issued bonds with a $100,000 face value. The coupon rate is 4.20% The yield to maturity is 4.20%. The bond matures in 20 years.
a. Calcalate the price of a bond.
b. Calculate the duration of the bond.
c. Calculate the modified duration of the bond.
d. Assume the yield to maturity increases to 4.50%. Using the duration, calculate the approximate percentage change in the price of the bond.
c. Using the duration, calculate the approximate new price of the bond.
f. Calculate the actual new price of the bond if the yield to maturity increases to 4.50%.
Stan Corp, issued bonds with a $100,000 face value. The coupon

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