Find the duration for a 3-year 10 bond with a 7 yield to


Handout on Duration

1. Find the duration for a 3-year 10% bond with a 7% yield to maturity.

2. Suppose the market interest rate changes to 8%, using the bond’s duration, compute the percentage price change for the bond.

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Financial Management: Find the duration for a 3-year 10 bond with a 7 yield to
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