Problem
You currentlyown 5.6% coupon bond that makes semi annual payments and has 15 years to maturity and a par value of 100$. The current yearly YTM on bond is 5. Your boss asked you to estimate modified duration of the bond using the approximation from the price change associated with 50 BP change in YTM. Current price is 106.28. Price with 50 BP decrease in in YTM=111.19 price with 50 BP increase in YTM=101.01. Calculate modified duration of bond.