Answered: A semi-annual coupon bond has MacD of…

A semi-annual coupon bond has MacD of 26.4 years, yield-to-maturity of 4.4%, and price of $1178.57. What is its DV01? Answer in dollars, rounded to three decimal places.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter5: Bonds, Bond Valuation, And Interest Rates

Section: Chapter Questions

Problem 24SP

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$Dollor value = Modified duration * Current price * 1 percent change in YTM Dollar value = - 26.4 * 1178.57 * 0.01 Dollar value = - 311.14248$

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