Today, XYZ company issues 3-year 6% semi-annual coupon payment corporate bond. The YTM is 8% at the moment of issue. Par
Posted: Thu Apr 28, 2022 1:31 pm
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.
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.