Solution-Determining the yield to maturity

Determining the yield to maturity

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A $1000 bond that pays annual coupons at 4.5% redeems at par in exactly 3 years from now. If the yield to maturity is currently 5%, calculate the price change (?P), predicted by modified duration, for a 100 basis point decrease in yield.

Reference no: EM131206328

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Determining the yield to maturity

Reference no: EM131206328

Reference no: EM131206328

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