A 5 year bond with a yeild of 7 continuously compounded


A 5 year bond with a yeild of 7% (continuously compounded) pays an 8% coupon at the end of each year.

a) what is the bond's price ?

b) what is the bond's duration?

c) use the duration to calculate the effect on the bond's price of a 0.2% decrease in its yield.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A 5 year bond with a yeild of 7 continuously compounded
Reference No:- TGS02858644

Expected delivery within 24 Hours