What is the bond macauley duration

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Reference no: EM132189987

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

(a) What is the bond's Macauley Duration (show your work, like you did in problem (16) above.)

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

(d) Calculate the change in the full bond price for a 40 bps change in yield.

Reference no: EM132189987

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