Suppose a bond has 10 years to maturity, a coupon rate of 6%, and a face value

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Suppose a bond has 10 years to maturity, a coupon rate of 6%, and a face value of $100 selling at a 7% yield to maturity where coupon payments are made every 6 months.

a) Use modified duration to approximate the change in price when yield to maturity decreases to 5%.

Related Book For answer-question

Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

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Posted Date: Jun 13, 2022 02:07 AM

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Suppose a bond has 10 years to maturity, a coupon rate of 6%, and a face value

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Introduction to Finance Markets Investments and Financial Management

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