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An investor wants to find the duration of a(n) 30-year, 5% semiannual pay, noncallable bond...

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Finance

An investor wants to find the duration of a(n) 30-year, 5% semiannual pay, noncallable bond that's currently priced in the market at $526.77, to yield 10%. Using a 50 basis point change in yield, find the effective duration of this bond (Hint: use Equation 11.11).

The new price of the bond if the market interest rate decreases by 50 basis points (or 0.5%) is $ (Round to the nearest cent.)

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