# September 2023 Your friend would like to know the price and duration of an annual coupon

2024 Finance Assignment Help

Your friend would like to know the price and duration of an annual coupon 2023

Your friend would like to know the price and duration of an annual coupon bond but she has lost her financial calculator. You decide to help. The bond is a 4-year annual 7% coupon bond with a yield to maturity of 9%. Determine the current price and the duration of the bond. You know that your friend will not buy the bond immediately; instead, she plans to trade at the end of the week. You worry that rates may change in the meantime and decide to perform additional calculations. In class, we learned that the duration rule for price sensitivity ( ) can tell you how prices will differ when interest rates change. You also remember that this formula only works well for small changes in rates. You decide to recalculate the bond’s price for two scenarios: 1) when rates decrease by one basis point and 2) when rates decrease by one hundred basis points by the end of the week. Price the bond in both cases using the duration formula for price sensitivity. To check how well the formula works, re-price the bond in both cases using bond pricing instead. Describe the magnitude of the error you find when using the duration formula across the two scenarios.

#write essay #research paper #blog writing #article writing #academic writer #reflective paper #essay pro #types of essays #write my essay #reflective essay #paper writer #essay writing service #essay writer free #essay helper #write my paper #assignment writer #write my essay for me #write an essay for me #uk essay #thesis writer #dissertation writing services #writing a research paper #academic essay #dissertation help #easy essay #do my essay #paper writing service #buy essay #essay writing help #essay service #dissertation writing #online essay writer #write my paper for me #types of essay writing #essay writing website #write my essay for free #reflective report #type my essay #thesis writing services #write paper for me #research paper writing service #essay paper #professional essay writers #write my essay online #essay help online #write my research paper #dissertation writing help #websites that write papers for you for free #write my essay for me cheap #pay someone to write my paper #pay someone to write my research paper #Essaywriting #Academicwriting #Assignmenthelp #Nursingassignment #Nursinghomework #Psychologyassignment #Physicsassignment #Philosophyassignment #Religionassignment #History #Writing #writingtips #Students #universityassignment #onlinewriting #savvyessaywriters #onlineprowriters #assignmentcollection #excelsiorwriters #writinghub #study #exclusivewritings #myassignmentgeek #expertwriters #art #transcription #grammer #college #highschool #StudentsHelpingStudents #studentshirt #StudentShoe #StudentShoes #studentshoponline #studentshopping #studentshouse #StudentShoutout #studentshowcase2017 #StudentsHub #studentsieuczy #StudentsIn #studentsinberlin #studentsinbusiness #StudentsInDubai #studentsininternational