Assignment_8 - d. If the market interest will drop for 5...

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Assignment 8 1. Find the information of the following bonds -  CPF117A, SRT158A,  THAI155A, then a. Suppose the required return is 8%, find the  current bond price (Suppose today is 8/8/2008) b. If the price of every bond is $890, How much is yield to maturity for  each bond? c. Find the modified duration for each bond
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Unformatted text preview: d. If the market interest will drop for 5 basis point, what is percentage change in price and estimated new price for each bond? e. Which bond has most price sensitivity to interest rate change? f. Suppose the interest rate will increase, which bond will you invest? Why?...
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This note was uploaded on 01/11/2012 for the course FINANCE fin 3701 taught by Professor Tengihla during the Spring '11 term at Assumption College.

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