An 8% coupon bond with annual payments (face value = 10,000) currently trades at par....
70.2K
Verified Solution
Link Copied!
Question
Finance
An 8% coupon bond with annual payments (face value = 10,000) currently trades at par. Its annual Macaulay duration is 5.43 years.
Suppose yield goes down by 0.36%. Calculate the approximate dollar change in price using duration. Assume annual compounding. Round your answer to 2 decimal places.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
