Consider a 30-year corporate bond paying 9 percent


Consider a 30-year corporate bond paying 9 percent semi-annual coupon. The current yield to maturity is 11 percent. (Please show your work)

(a) Find the modified duration.

(b) Refer to part a. If the interest changes by 25 basis points, what is the exact change in price?

(c) Refer to part b. If the interest changes by 25 basis points, what is the approximate change in price?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Consider a 30-year corporate bond paying 9 percent
Reference No:- TGS01523089

Expected delivery within 24 Hours