A zero coupon bond of Rs 10,000 has a term to maturity of seven years and a market yield of 9 percent at the time of issue. a. What is the issue price? b. What is the duration of the bond? c. What is the modified duration of the bond?
A zero coupon bond of Rs 10,000 has a term to maturity of seven years and a market yield of 9 percent at the time of issue. a. What is the issue price? b. What is the duration of the bond? c. What is the modified duration of the bond?
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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A zero coupon bond of Rs 10,000 has a term to maturity of seven years and a market yield of 9 percent at the time of issue.
a. What is the issue price?
b. What is the duration of the bond?
c. What is the modified duration of the bond?
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