I really need help with this its all part of the same questi
I really need help with this it\'s all part of the same question
Part II Problem Solving (40 Points) Show all work to receive full credit Problem 1: A bond has a 7.5% annual coupon rate with 4 years to maturity and pays annual coupon What is the price of the bond if the yield to maturity is 5% 1.1 1.2 What is price of the bond if the yield to maturity increases by 0.2%? What is the % change in the price of the bond when yield increases by 0.2%? 1.3 1.4 What is the bond duration?Solution
Price=7.5/5 multiplied by 100=150
7.5/7.7multiplied by 100=97.48
100-97.40 whole divided by 100, whole multiplied by 100=2.6%
Band duration is 4
Can answer only 4 parts according to chegg policy. Please send other parts as separate question
