Consideran annual4Coupon4yearbond payeng a coupon rate 75%If it is 000 par and the TTm= .04Lohat is the price Q this bona ?what is the bon a's moaitied durationuse the bona's modified duration toestimate the price caange the bond ifYTm Changes to .o4s (So positive prceChange a syo.2 and a negalive Change2 $40.2 Qu would be writen es-40.2)ofuse 5 decimal places

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Answered: Consider an anmual 4year Coupon bond @…

Consider an anmual 4year Coupon bond @ coupon rate 75% payeng Ef it is 1000 par and the 7Tm=oy phat is the price D this bona? Dhat is the bon a's moditied duration

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 7DTM

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Question

Consider
an annual4
Coupon
4year
bond payeng a coupon rate 75%
If it is 000 par and the TTm= .04
Lohat is the price Q this bona ?
what is the bon a's moaitied duration
use the bona's modified duration to
estimate the price caange the bond if
YTm Changes to .o4s (So positive prce
Change a syo.2 and a negalive Change
2 $40.2 Qu would be writen es-40.2)
of
use 5 decimal places

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