Alp You are given the following information about a 30-year bond:The par value is 2000.The redemption value is 2250.i)ii)iii)iv)v)vi)Calculate the modified duration of the bond, based on the yield rate.(A)(B)(C)(D)(E)Coupons are paid annually.The annual coupon rate is twice the annual yield rate.The purchase price is 3609.29.Based on the yield rate, the Macaulay duration of the bond is 14.41 years.12.40 years13.07 years13.71 years14.41 years15.15 years

The modified duration of a bond refers to the sensitivity of the price of the bond to a change in…

You are given the following information about a 30-year bond: The par value is 2000. i) ii) iii) iv) (A) (B) (C) (D) The redemption value is 2250. Coupons are paid annually. The annual coupon rate is twice the annual yield rate. The purchase price is 3609.29. Based on the yield rate, the Macaulay duration of the bond is 14.41 years. v) vi) Calculate the modified duration of the bond, based on the yield rate. 12.40 years 13.07 years 13.71 years 14.41 years 15.15 years

You are given the following information about a 30-year bond: The par value is 2000. i) ii) iii) iv) (A) (B) (C) (D) The redemption value is 2250. Coupons are paid annually. The annual coupon rate is twice the annual yield rate. The purchase price is 3609.29. Based on the yield rate, the Macaulay duration of the bond is 14.41 years. v) vi) Calculate the modified duration of the bond, based on the yield rate. 12.40 years 13.07 years 13.71 years 14.41 years 15.15 years

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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