Find the modified duration of each bond

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Reference no: EM13260066

Consider the following two bonds:
A 10-year zero-coupon bond with Macaulay duration 10 and yield to maturity 4%
A 5-year, 8% coupon bond with Macaulay duration 4.3 and yield to maturity 7%
a. Find the modified duration of each bond.
b. If market interest rates rise by 0.75%, find the percent change in the price of each bond. Express your answers as percentages rounded to two decimal places

Reference no: EM13260066

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