Consider a 4-year bond with annual coupon payments. The bond has a facevalue of $100 and sells for $95. The coupon rate is 3%, so that the vector of yealy payments is [3,3,3, 103]’. Round your answers to 4 decimal digits. a) Compute the bond’s yield-to-maturity. b) Using the bond’s yield-to-maturity, compute its duration. c) How a decrease in

Sep 8, 2023

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Consider a 4-year bond with annual coupon payments. The bond has a facevalue of $100 and sells for $95. The coupon rate is 3%, so that the vector of yealy payments is [3,3,3, 103]’. Round your answers to 4 decimal digits. a) Compute the bond’s yield-to-maturity. b) Using the bond’s yield-to-maturity, compute its duration. c) How a decrease in
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