1000 euro par value, 3% annual-coupon bond was issued 1.03.2015 and has 30 year maturity You purchased the bond on 20.10.2021 Market interest rate for similar securities is 2,8% Calculate following: a. Clean price b. Acrrued interest c. Full price d. Macaulay duration e. Modified duration If interest rate in the market declines by 50 bps g. Calculate new price with duration and test it with new price.
1000 euro par value, 3% annual-coupon bond was issued 1.03.2015 and has 30 year maturity You purchased the bond on 20.10.2021 Market interest rate for similar securities is 2,8% Calculate following: a. Clean price b. Acrrued interest c. Full price d. Macaulay duration e. Modified duration If interest rate in the market declines by 50 bps g. Calculate new price with duration and test it with new price.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1000 euro par value, 3% annual-coupon bond was issued 1.03.2015 and has 30 year maturity
You purchased the bond on 20.10.2021
Market interest rate for similar securities is 2,8%
Calculate following:
a. Clean price
b. Acrrued interest
c. Full price
d. Macaulay duration
e. Modified duration
If interest rate in the market declines by 50 bps
g. Calculate new price with duration and test it with new price.
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