What is the Macaulay and Modified duration for a bond with 5 years to maturity, a 6%
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What is the Macaulay and Modified duration for a bond with 5 years to maturity, a 6% coupon rate paid annually, a 5% YTM, and face value of 1,000? If interest rates go up by 40 basis points, what is the predicted price using the duration approximation? What would the actual price be after the 40 bp increase in rates?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
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