Handout on duration, Find the duration for a 3-year 10%

Handout on duration

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Reference no: EM131022589

Handout on Duration

1. Find the duration for a 3-year 10% bond with a 7% yield to maturity.

2. Suppose the market interest rate changes to 8%, using the bond’s duration, compute the percentage price change for the bond.

Reference no: EM131022589

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Handout on duration : Find the duration for a 3-year 10% bond with a 7% yield to maturity. Suppose the market interest rate changes to 8%, using the bond’s duration, compute the percentage price change for the bond.

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