What percentage change in the market price of this bond

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Suppose that a $1000 par value bond has 4 years and 3 months left until maturity. It has a coupon rate of 6% that is paid in semi-annual interest payments, and it has a required rate of return equivalent to 5%. What is the intrinsic value of the bond?

1-A 9% annual coupon bond will mature in 5 years, and it has a YTM of 6%. What is the duration of this bond?

2-Using the bond information from the prior problem, calculate the modified duration of the bond.

3-Based on your answer from the prior problem, what percentage change in the market price of this bond would you expect to see for a 1% increase in market interest rates?

Reference no: EM131899497

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