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A 10-year 10 percent annual coupon 1000 bond trades at a

A 10-year, 10 percent annual coupon $1,000 bond trades at a yield to maturity of 8 percent. The bond has duration of 6.994 years. What is the modified duration of this bond?

What is the practical value of calculating modified duration? Does modified duration change the result of using the duration relationship to estimate price sensitivity?

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Macroeconomics: A 10-year 10 percent annual coupon 1000 bond trades at a

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A 10-year, 10 percent annual coupon $1,000 bond trades at a yield to maturity of 8 percent. The bond has duration of 6.994 years. What is the modified duration of this bond?

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: A 10-year 10 percent annual coupon 1000 bond trades at a

Reference No:- TGS0656254

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: A 10-year 10 percent annual coupon 1000 bond trades at a

Reference No:- TGS0656254

Recent Questions Asked Macroeconomics

Q : Rank the bonds in terms of convexity and express the

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