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Based off my work, how would I complete part D? ...

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Accounting

Based off my work, how would I complete part D? image
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P = CPT-CIN] + Par 1. Consider an annual coupon bond with a face value of $1000, annual coupon rate of 7.5%. three years to maturity and initial YTM of y = 0.094. (a) Compute the current price of the bond, P. P- U = FV Coupon rate = 7.5%. YTM=0094 = 9,4 = I 3 1000 PMT= 75 0.094 (1-1309 ) + 763.94 (b) Compute the duration of the bond, D (1+ N P = 75 [1-670.0947 + (1+0 094) in the wt=CFt / City) D={+ (wt) Price c Ft Set 75 wt 75/1+44T = 75/1.094 = 65.51 0.0720 75 145/+9.4) = 75/1197=42.66 0.0658 1075 1095/21794} = 1075/1.309 = 821.24 0.8622 952.46 - down price went (c) Suppose that the yield rises to y = 10. Compute the price, P, of the bond at this higher yield and determine the actual percentage price change. 1(0.0720)+260.0658) +3 (0.8622 = 0.0720+ 0.1316 +2.5866 = 1.3951 - 1.3951 (0.00 ~ -0.7651 (d) Approximate the percentage price change in part (c) using D. e Suppose instead of rising to y, the yield rises from yo to y = 0.134. Compute the price, P, of the bond at this higher yield and determine the resulting percentage price change. (f) Approximate the percentage price change in part (e) using D

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