duration - change the payment within a year, for example: 1...

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Coupon rate 8% Yield 12% maturity 2 payment within a year 2 Face Value 1000 t years Weight (x) x × years 1 0.5 40 37.736 0.0405 0.020 2 1 40 35.600 0.0383 0.038 3 1.5 40 33.585 0.0361 0.054 4 2 1040 823.777 0.8851 1.770 930.698 1.000 1.883 Experiments you can do: change coupon rate change yield
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Unformatted text preview: change the payment within a year, for example: 1 means annual coupon bond, 2 means semiannual cou If you want to change the maturity, then you need to modify the table a little bit. CF t PV(CF t ) pon bond and etc...
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This note was uploaded on 04/19/2010 for the course FINANCE fin3117 taught by Professor Nanli during the Spring '10 term at National University of Juridical Sciences.

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duration - change the payment within a year, for example: 1...

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