Duration

Duration - BusinessManagement301 Day8.1 MidtermExamReview...

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Business Management 301 Day 8.1 Midterm Exam Review July 14, 2011
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Day 8 Agenda 1) TA Review Session Today 11:00-12:00 W308 2) Midterm Exam July 14-15 (Note: Testing  Center Closes 5:00 PM on Friday, July 15) POW both due Friday, July 15 at 9:00 PM 4) Course Survey July 19 at 8:00 AM 7) Midterm Exam Review
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POW #6 : POW #6 : Duration Exercise Duration Exercise
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  POW #6: Duration Exercise   You are evaluating an investment in an annual pay bond with  exactly four years to maturity.  The bond’s coupon rate is 10% and  the bonds current YTM is 13%.     1) Calculate the bonds duration and modified duration. 2) How would you explain the concept of duration to an  inexperienced investor?  What factors influence duration? 3) In quantitative terms, what insight does duration give us about 
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This note was uploaded on 11/17/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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Duration - BusinessManagement301 Day8.1 MidtermExamReview...

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