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Calculate the duration for a 1000 4-year bond with a 45

Calculate the duration for a $1,000, 4-year bond with a 4.5 percent annual coupon, currently selling at par. Use the bond"s duration to estimate the percentage change in the bond"s price for a decrease in the market interest rate to 3.5 percent. How different is your answer from the actual price change calculate?

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Macroeconomics: Calculate the duration for a 1000 4-year bond with a 45

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Calculate the duration for a 1000 4-year bond with a 45

Reference No:- TGS0659928

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : A new-issue municipal bond rated aaa by moodys investors

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Calculate the duration for a 1000 4-year bond with a 45

Reference No:- TGS0659928

Recent Questions Asked Macroeconomics

Q : A new-issue municipal bond rated aaa by moodys investors

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Q : Discuss how the nec3 form of contract provides stimulus to

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Q : Define interest rate risk explain the two types of interest

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