Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:2. Dhofar company issued bonds with 500 $ face value and 10 percent annual coupon rate
The current yield to maturity on this bond is 5 percent and maturity date in 6 years. The
current market price is 626.89.Calculate the expected change in the bond price if the yield
to maturity is expected to decrease by 0.12 percent and the modified duration of this bond
is 4.69 .
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