Question: There is a security with 10 years to maturity, a coupon rate of 318 and a face value of $1,000. A. Calculate the bond's value
There is a security with 10 years to maturity, a coupon rate of 318 and a face value of $1,000. A. Calculate the bond's value at the following interest rates B. Calculate the bond's value if the interest rate increases by 10 -basis points (os\% for each of the above interest rates. C. Calculate the change in the bond price to a change in the interest rates (slope chg Bond / chg rate). D. Calculate the approximate Bond's elasticity at each of the interest rates
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