Bond price volatility a) Calculate the yield of a 5 year bond that pays a...
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Accounting
Bond price volatility
a) Calculate the yield of a 5 year bond that pays a coupon rate of 2 percent semi annually and that has a current price of 104 87 The bond has a face value of 100
b) What is the modified duration of this bond?
c) How does the price of the bond change when the yield changes to 0 02
d) What price change would be predicted by modified duration?
Please do not answer on excel i have excel answer
e) Explain the effects of maturity and the coupon rate on the duration of a bond
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