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Market interest rates may rise by two percent in t...

Description

Solution


Question

Market interest rates may rise by two percent in the near future. Compute Maculay's duration, Modified duration, and potential the change in rice, of the $1000 Xonox Company bond that has 3 years to maturity, and a ten percent coupon. The present market rate of interest on bonds of similar risk is seven percent. You may assume the convexity factor (C) is 250. show your work.

 

Paper#11913 | Written in 18-Jul-2015

Price : $25
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