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11. A bond has a $1,000 par value and an 8 percent coupon rate paid annually. The bond has four years remaining to maturity and a 7 percent yield to maturity. Calculate this bond's modified duration. a. 0.59 b. 3.35 Par value = 1000 Coupon rate (2) N=4 Ⓒ 3.58 d. 4 Y=7

11. A bond has a $1,000 par value and an 8 percent coupon rate paid annually. The bond has four years remaining to maturity and a 7 percent yield to maturity. Calculate this bond's modified duration. a. 0.59 b. 3.35 Par value = 1000 Coupon rate (2) N=4 Ⓒ 3.58 d. 4 Y=7

Essentials Of Investments
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
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11. A bond has a $1,000 par value and an 8 percent coupon rate paid annually. The bond has four years remaining to maturity and a 7 percent yield to maturity. Calculate this bond's modified duration. a. 0.59 b. 3.35 Par value = 1000 Coupon rate (2) N=4 Ⓒ 3.58 d. 4 Y=7
Transcribed Image Text:11. A bond has a $1,000 par value and an 8 percent coupon rate paid annually. The bond has four years remaining to maturity and a 7 percent yield to maturity. Calculate this bond's modified duration. a. 0.59 b. 3.35 Par value = 1000 Coupon rate (2) N=4 Ⓒ 3.58 d. 4 Y=7
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