What is the modified duration of the bond

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Reference no: EM131881488

A. If a 3-year bond with 8% coupon rate paid semi-annually and face value of $1000 is selling for $935.48, what would be the change in price of the bond when yield-to-maturity is 12%? Show how you found the value.

B. A bond with 3 years to maturity and 9% coupon rate is selling at YTM of 11%. The bond has a face value of $1000. What is the modified duration of the bond? Show how you found the value.

Reference no: EM131881488

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