What is the bond macauley duration

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Question - For the bond in problem 16 above, if the yield to maturity rises by 75 basis points (bps), use the modified duration to calculate the new full bond price.

For the bond in problem 16 above, if the yield to maturity falls by 90 basis points (bps), use the modified duration to calculate the new full bond price.

A 20-year, 7.500% annual payment bond settles on a coupon date. The bond's yield to maturity is 9.400%.

What is the bond's Macauley Duration (show your work, like you did in problem.

What is the bond's approximate modified duration? Use yield changes of +/- 20 bps around the yield to maturity for your calculations.

Reference no: EM132184003

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