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Calculate the modified duration of the bond

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Reference no: EM132554386

You are given the following information for a Commonwealth Government bond:

Purchase and settlement of a bond on the 20th of March, 2020

Maturity: 15th of June, 2024

Coupon: 6% p.a.

Yield: 12.54% p.a.

Frequency Semi-annual

Maturity Value: $10,000,000.

Required:

  • Calculate the price per $100 of the bond (show all workings) and the amount paid for the bond.
  • Calculate the duration of the bond
  • Calculate the modified duration of the bond.

Reference no: EM132554386

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