If market interest rates rise by 075 find the percent, Finance Basics

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If market interest rates rise by 075 find the percent

Consider the following two bonds:
A 10-year zero-coupon bond with Macaulay duration 10 and yield to maturity 4%
A 5-year, 8% coupon bond with Macaulay duration 4.3 and yield to maturity 7%
a. Find the modified duration of each bond.
b. If market interest rates rise by 0.75%, find the percent change in the price of each bond. Express your answers as percentages rounded to two decimal places.

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Finance Basics: If market interest rates rise by 075 find the percent

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Finance Basics: If market interest rates rise by 075 find the percent

Reference No:- TGS0598697

Have a Question? (oR Write a Review)

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Reference No:- TGS0598697

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