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Estimate through sensitivity the entire price of the bond

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Reference no: EM132940047

Calculation of whole price, accrued interest, ex-coupon price, duration, adjusted duration and sensitivity:
Current value date: 11.01.2012

Maturity: 3.5 years
Coupon payment date: June 25, 2012, 2013, 2014 and 2015
Annual nominal coupon: 4.5%
Amortization: At par for 1.000€
Amortization date: 06.25.2015
Current IRR: 3.7%

Problem 1) Determine the whole Price, accrued interest and ex-copupon Price

Problem 2) Calculate the duration, adjusted duration and sensitivity

Problem 3) Estimate through sensitivity the entire Price of the bond with a new IIR of 3.9% and with a IRR of 3.3%

Problem 4) Check the results and approximation of these estimates, comparing them with the real prices of the bond with the IRR of 3.9% and 3.3%

Reference no: EM132940047

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