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a) Calculate the duration of a par-value annual bond with a coupon rate of 7% and a remaining time to maturity of 3 year

Posted: Fri Mar 04, 2022 9:43 am
by answerhappygod
A Calculate The Duration Of A Par Value Annual Bond With A Coupon Rate Of 7 And A Remaining Time To Maturity Of 3 Year 1
A Calculate The Duration Of A Par Value Annual Bond With A Coupon Rate Of 7 And A Remaining Time To Maturity Of 3 Year 1 (36.82 KiB) Viewed 19 times
a) Calculate the duration of a par-value annual bond with a coupon rate of 7% and a remaining time to maturity of 3 years. Please show the FV of each cashflow and all of your work. b) What is the expected change in price for a 5 basis point increase in yield. Calculation Question 2: (10 points) Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) Price 1 $925.93 2 853.39 3 782.92 4 715.00 5 650.00 a. Calculate the forward rate of interest for each year. (Round your answers to 2 decimal places.)