Time to Maturity: 5 years Coupon Payment: Semi-ainual Coupon Rate: Par Value: YTM (in annual): 3.5% 6.2% $1,000 15. What the Macaulay's duration and modified duration for 1% yield change for this bond given the information?

Time to Maturity: 5 years Coupon Payment: Semi-ainual Coupon Rate: Par Value: YTM (in annual): 3.5% 6.2% $1,000 15. What the Macaulay's duration and modified duration for 1% yield change for this bond given the information?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 2EP

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Concept explainers

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:

Question

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Consider following characteristic of a bond
Time to Maturity: 5 years
Coupon Payment: Semi-ainual
Coupon Rate:
Par Value:
YTM (in annual): 3.5%
6.2%
$1,000
15. What the Macaulay's duration and modified duration for 1% yield change for this bond
given the information?
国

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