Answered: Calculate the price of this bond

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Calculate the price of this bond

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...

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Question

Using a two-year semiannual 8% coupon bond, 1000 par, with a 5% YTM. For this question find all answers to at least the 6thdecimal place.

A.Calculate the price of this bond

C.Using modified duration calculate Change in p over p for a change in y of 1% and5%.

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