An investor buys a three-year bond with a 10% coupon rate with semiannual coupon payments. The bond is purchased at increase/decrease in the semiannual yield-to-maturity, estimate the bond's modified duration? price of $110.834383 per S100 par value. Assuming a 5 bps
An investor buys a three-year bond with a 10% coupon rate with semiannual coupon payments. The bond is purchased at increase/decrease in the semiannual yield-to-maturity, estimate the bond's modified duration? price of $110.834383 per S100 par value. Assuming a 5 bps
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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![5) An investor buys a three-year bond with a 10% coupon rate with semiannual coupon payments.
The bond is purchased at a price of $110.834383 per $100 par value. Assuming a 5 bps
increase/decrease in the semiannual yield-to-maturity, estimate the bond's modified duration?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4300ca7-9d6c-47a3-b362-c6baab75cd13%2Ffddf2ea9-d345-4545-a0bb-6e4f11086f71%2F8vpxq1v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5) An investor buys a three-year bond with a 10% coupon rate with semiannual coupon payments.
The bond is purchased at a price of $110.834383 per $100 par value. Assuming a 5 bps
increase/decrease in the semiannual yield-to-maturity, estimate the bond's modified duration?
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