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An investor wants to find the duration of a 20 year, 6% semiannual pay, non-callable...

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Accounting

An investor wants to find the duration of a 20 year, 6% semiannual pay, non-callable bond that is currently priced in the market at $723.98, to yield 9%. Using a 200 basis point change in yield, find the effective duration of the bond. image
An investor wants to find the duration of a(n) 20 year, 6% semiannual pay, noncalable bond thats currenty priced in the market at $723.98, to yeld 9%. Using a 200 basis point change in yeld, find the effective duration of this bond (Hint: use Equation 11.11) The new price of the bond if the maket interest rate decreases by 200 basis points (or 2N ) is (Round to the nearest cent)

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