A 5 year bond with a yeild of 7 continuously compounded, Ask an Expert

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A 5 year bond with a yeild of 7% (continuously compounded) pays an 8% coupon at the end of each year.

a) what is the bond's price ?

b) what is the bond's duration?

c) use the duration to calculate the effect on the bond's price of a 0.2% decrease in its yield.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93052658

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