Today, XYZ company issues 3-year 6% semi-annual coupon payment corporate bond. The YTM is 8% at the moment of issue. Par

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answerhappygod
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Today, XYZ company issues 3-year 6% semi-annual coupon payment corporate bond. The YTM is 8% at the moment of issue. Par

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Today, XYZ company issues 3-year 6% semi-annual coupon payment
corporate bond. The YTM is 8% at the moment of issue. Par value of
the bond is $1,000.
1. Calculate Macaulay Duration.
2. Immediately after the issue, the YTM increases to 10%.
Calculate the percentage change in bond price by using Duration
model.
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