A 1000 corporate bond has an 8 annual coupon with, Finance Basics

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A 1000 corporate bond has an 8 annual coupon with

A $1,000 corporate bond has an 8% annual coupon with semi-annual payments and compounding, with 10 years to maturity. The current market for a similar bond is 7% annual yield for a bond with similar risks.

A) calculate the bond's current price.
B) calculate the bond price if the yield increases from 7% to 7.5% as well as the percentage change in price.
C) calculate the macaulay duration on the bond.

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Finance Basics: A 1000 corporate bond has an 8 annual coupon with

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Finance Basics: A 1000 corporate bond has an 8 annual coupon with

Reference No:- TGS0618988

Have a Question? (oR Write a Review)

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Finance Basics: A 1000 corporate bond has an 8 annual coupon with

Reference No:- TGS0618988

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