Use the following information to answer this question: Coupon = 5.5%, Semiannual Payments; Current YTM = 4.5%;
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Use the following information to answer this question: Coupon = 5.5%, Semiannual Payments; Current YTM = 4.5%; Maturity = 5 years; Par Value = $1000; Current Price = $1044.33; approximate modified duration = 5.0000; approximate convexity = 23.000. Use the combined effect of both the duration and convexity measures to estimate the price of the bond after a 100-basis-point increase in the YTM.
Group of answer choices
$993.3145
$989.1684
$ 999.5432
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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