Problemconsider a 15-year bond with 9 semi-annual coupons, Ask an Expert

Accounting

Problem:

Consider a 15-year bond with 9% semi-annual coupons. The modified duration is 3.2 and the convexity is 9. At the current yield rate the price of the bond is 95.50.

Required:

Question: Estimate the price of the bond if there is a 50 point increase in the yield.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166417

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