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You are given the following information about a 30-year bond: The par value is 2000. i) ii) iii) iv) (A) (B) (C) (D) The redemption value is 2250. Coupons are paid annually. The annual coupon rate is twice the annual yield rate. The purchase price is 3609.29. Based on the yield rate, the Macaulay duration of the bond is 14.41 years. v) vi) Calculate the modified duration of the bond, based on the yield rate. 12.40 years 13.07 years 13.71 years 14.41 years 15.15 years

You are given the following information about a 30-year bond: The par value is 2000. i) ii) iii) iv) (A) (B) (C) (D) The redemption value is 2250. Coupons are paid annually. The annual coupon rate is twice the annual yield rate. The purchase price is 3609.29. Based on the yield rate, the Macaulay duration of the bond is 14.41 years. v) vi) Calculate the modified duration of the bond, based on the yield rate. 12.40 years 13.07 years 13.71 years 14.41 years 15.15 years

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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You are given the following information about a 30-year bond: The par value is 2000. The redemption value is 2250. i) ii) iii) iv) v) vi) Calculate the modified duration of the bond, based on the yield rate. (A) (B) (C) (D) (E) Coupons are paid annually. The annual coupon rate is twice the annual yield rate. The purchase price is 3609.29. Based on the yield rate, the Macaulay duration of the bond is 14.41 years. 12.40 years 13.07 years 13.71 years 14.41 years 15.15 years
Transcribed Image Text:You are given the following information about a 30-year bond: The par value is 2000. The redemption value is 2250. i) ii) iii) iv) v) vi) Calculate the modified duration of the bond, based on the yield rate. (A) (B) (C) (D) (E) Coupons are paid annually. The annual coupon rate is twice the annual yield rate. The purchase price is 3609.29. Based on the yield rate, the Macaulay duration of the bond is 14.41 years. 12.40 years 13.07 years 13.71 years 14.41 years 15.15 years
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