8. Duration Example - 9 391.5163291 82.50 0.491100605 10...

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Duration Example 16-year bond, 8.25% coupon mkt i = 7.37% PV factor = 1/(1 + i) t coupon PV factor at 7.37% time A*B*C 82.50 0.931358853 1 76.83710534 82.50 0.867429312 2 143.1258365 82.50 0.807887969 3 199.9522723 82.50 0.752433612 4 248.3030919 82.50 0.700785705 5 289.0741034 82.50 0.652682970 6 323.0780703 82.50 0.607882062 7 351.051891 82.50 0.566156340 8 373.6631845 82.50 0.527294719
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Unformatted text preview: 9 391.5163291 82.50 0.491100605 10 405.1579989 82.50 0.457390896 11 415.0822379 82.50 0.425995060 12 421.7351092 82.50 0.396754270 13 425.5189547 82.50 0.369520602 14 426.796295 82.50 0.344156284 15 425.893401 1082.50 0.320533001 16 5551.631585 bond price $1,081.13 10,468.42 duration 9.683...
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This note was uploaded on 09/27/2009 for the course UGBA 133 taught by Professor Distad during the Summer '08 term at University of California, Berkeley.

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