Using a twoyear semiannual 8% coupon bond, 1000 par, with a 5% YTM. For thisquestion find all answers to at least the 6thdecimal place. A.Calculate the price of this bond B.Calculate duration and modified duration C.Price the same bond with a YTM of 6% and 10% as you did in part A.

Using a twoyear semiannual 8% coupon bond, 1000 par, with a 5% YTM. For thisquestion find all answers to at least the 6thdecimal place. A.Calculate the price of this bond B.Calculate duration and modified duration C.Price the same bond with a YTM of 6% and 10% as you did in part A.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using a twoyear semiannual 8% coupon bond, 1000 par, with a 5% YTM. For thisquestion find all answers to at least the 6thdecimal place.

A.Calculate the price of this bond

B.Calculate duration and modified duration

C.Price the same bond with a YTM of 6% and 10% as you did in part A.

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