A bond has 5 years to mature. Its face value is 1500 and pays a coupon of 12% coupon is paid on a semi-annual basis. The market interest rate is 14% What is the duration of this bond? Assume that the...



  1. A bond has 5 years to mature. Its face value is 1500 and pays a coupon of 12% coupon is paid on a semi-annual basis. The market interest rate is 14%



  • What is the duration of this bond?

  • Assume that the interest rate falls by 0.5% by how much will the bond price increase?

  • Compute the new price of the bond




Jun 08, 2022
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