Assume the 11 is compounded semi-annually not continuously


(Assume the 11% is compounded semi-annually, not continuously) A five year bond with a yield of 11% 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?

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Financial Management: Assume the 11 is compounded semi-annually not continuously
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