What is the bond duration

Assignment Help Financial Management

Reference no: EM132044401

A) What is the price value of a bond with a face value of $100 that will mature in 18 months and pays a coupon of 8% per annum (coupons are prepaid semiannually) given the yield is 6.3%

B) What is the bond's duration?

C) Use the duration to calculate the effect on the bond's price of an increase of 20 basis ppoints in its yield.

Reference no: EM132044401

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