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Calculate the modified duration for a 8 year, 7.86% coupon bond with a yield to maturity of 7.49%. Assume the bond pays interest semi- annually and has a par value of $100. Use a 20 basis point change as the annual change in rate for the duration calculation, and round all intermediate calculations to four digits. The modified duration is

Calculate the modified duration for a 8 year, 7.86% coupon bond with a yield to maturity of 7.49%. Assume the bond pays interest semi- annually and has a par value of $100. Use a 20 basis point change as the annual change in rate for the duration calculation, and round all intermediate calculations to four digits. The modified duration is

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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Calculate the modified duration for a 8 year, 7.86% coupon bond with a yield to maturity of 7.49%. Assume the bond pays interest semi- annually and has a par value of $100. Use a 20 basis point change as the annual change in rate for the duration calculation, and round all intermediate calculations to four digits. The modified duration is
Transcribed Image Text:Calculate the modified duration for a 8 year, 7.86% coupon bond with a yield to maturity of 7.49%. Assume the bond pays interest semi- annually and has a par value of $100. Use a 20 basis point change as the annual change in rate for the duration calculation, and round all intermediate calculations to four digits. The modified duration is
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