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-2015Price : $25