What is the modified duration of a 5-year 2,000 par value bond with 8% annual coupons and an annual effective yield of 7%?
=1/1.07*(1*8%*1000/1.07+2*8%*1000/1.07^2+3*8%*1000/1.07^3+4*8%*1000/1.07^4+5*(1000+8%*1000)/2.07^5)/(8%*1000/1.07+8%*1000/1.07^2+8%*1000/1.07^3+8%*1000/1.07^4+(1000+8%*1000)/2.07^5)
=2.486764154
What is the modified duration of a 5-year 2,000 par value bond with 8% annual coupons...
A 3 year, 1000 par value bond has 8% annual coupons and an annual effective yield of 7%. Find the Macaulay duration of this bond.
12000 par value 12-year bond with 10% annual coupons is priced at par. Calculate its modified duration.
What is the modified duration of a three-year $1,000 par value bond with a 5% coupon paid semi- annually that is priced to yield 4%? 2.61 5.37 2.77 5.65 Question 6 4 pts You own two bonds. You have $2,000,000 in Bond A which has a modified duration of 8.14. You have $2,250,000 in Bond B which has a modified duration of 4.23. If rates rise by 50 basis points, what would be the approximate impact of the value of...
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Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons are paid semiannually. The yield to maturity is 6% and the face value of the bond is $1000.
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