We have following data for a corporate bond:
- Nominal value $100,000 
- Semiannual coupon rate 5%.
- Coupons are paid semiannually with redemption of face value at the end.
- Maturity 3 years
With information given above, answer following questions:
a) Calculate price of the bond
b) Calculate duration (according to Macaulay) if bond has a market rate of 4% semiannually.
c) Calculate Modified Duration  

Answer rating: 100% (QA)

Okay here are the calculations for the corporate bond a Price of the bond Nominal value 100000 Coup... View the full answer