Increase in interest rates for the bond

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Reference no: EM131332264

Compute the duration and expected price change for a 1/2% increase in interest rates for the following bond:

The par value of the bond is $1,000. The bond has 4 years to maturity with a 7 percent annual coupon rate. The yield to maturity is 8.53%. Show your work.

You can follow the example of duration I worked out in class by going to the content area under duration.

Reference no: EM131332264

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