Suppose NCKU company currently has NTD 10 million of five-year bonds with a coupon rate of 2%,
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose NCKU company currently has NTD 10 million of five-year bonds with a coupon rate of 2%, a yield-to-maturity of 3.25%, and a remaining life of two years, and NTD 20 million of ten-year bonds with a coupon rate of 3.5%, a yield-to-maturity of 4.5% and a remaining life of three years. These two bonds pay coupons semi-annually. Assuming the settlement date is January 1, 2022.
What is the portfolio modified duration of these two bonds using the Aggregate Cash Flow approach? years
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Posted Date: