Suppose a 3 year 5 coupon bond has a face value of 1000 and, Ask an Expert

Finance

Suppose a 3 year 5% coupon bond has a face value of $1000 and a yield of 6%. The coupon payments are annually and the yield is stated in terms of continuously compounding /discounting.

I) Determine the price of the bond.

II) Determine the duration of the bond.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92783661

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