Actuarial math on 112014 pj buys a 10000 par value bond, Financial Management

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Actuarial math on 112014 pj buys a 10000 par value bond

[Actuarial Math] On 1/1/2014, PJ buys a 10,000 par value bond that pays annual coupons with the 1st coupon due on 12/31/2014. The redemption value is 10,000. PJ pays 10,000 for the bond. At issue, PJ calculates the duration of the bond to equal 15.8374. One year later on 1/1/2015, PJ calculates the duration of the bond to equal 15.3419. Also on 1/1/2015, PJ calculates the present value of the redemption value to equal X. PJ assumes a constant effective yield i for all calculations. Solve for X.

Explain how to solve for X in the problem

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Financial Management: Actuarial math on 112014 pj buys a 10000 par value bond

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Financial Management: Actuarial math on 112014 pj buys a 10000 par value bond

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