Business, 16.04.2021 03:10 kyle696969

a. Calculate the duration of a $1,000 7% coupon bond with three years to maturity. Assume that all market interest rates are 6%. Show the computations in two different ways (Calculator inputs/Discounting by using the formula/Excel spreadsheet). b. Calculate the expected price change if interest rates increase to 6.75% using the duration approximation.

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a. Calculate the duration of a $1,000 7% coupon bond with three years to maturity. Assume that all m...

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