Calculate duration and modified duration for a 5 year bond with a face value of 2,000 and an annual coupounf rate of 6%. The current rate of interest is 8%. The current market price of the bond is Rs. 1840.29 What will be the market price of the bond if interest rates increase by 1%
Calculate duration and modified duration for a 5 year bond with a face value of 2,000 and an annual coupounf rate of 6%. The current rate of interest is 8%. The current market price of the bond is Rs. 1840.29 What will be the market price of the bond if interest rates increase by 1%
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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![Calculate duration and modified duration for a 5 year bond with a face
value of 2,000 and an annual coupounf rate of 6%. The current rate of
interest is 8%. The current market price of the bond is Rs. 1840.29 What
will be the market price of the bond if interest rates increase by 1%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03406c64-4b49-4dac-9ac4-a4de5122539e%2F89a006fa-50e7-41d4-8869-94480da9d86a%2Fwx636rq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calculate duration and modified duration for a 5 year bond with a face
value of 2,000 and an annual coupounf rate of 6%. The current rate of
interest is 8%. The current market price of the bond is Rs. 1840.29 What
will be the market price of the bond if interest rates increase by 1%
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