Compute the value of duration for a 4-year 1000 par value, Ask an Expert

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Calculate the value of duration for a 4-year, $1,000 par value U.S. Government bond purchased today at a yield to maturity of 15%. The bond coupon rate is 12 percent and it pays interest once a year at year end. Now suppose the market interest rate on comparable securities falls to 14 percent. What percentage change in this bond price will result?

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Category:- Basic Finance
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