Answer to Question #121175 in Finance for lastone

Question

6. Duration is a widely used measure of a portfolio’s exposure to yield curve movements. You have a 9 percent, $1000.00 bond with 4 years to maturity paid interest semi-annually. Its YTM is 10 percent. Calculate the market value of the bond.

Answer 1

$MV=\frac{1000*0.09}{0.1}=900$

MV-market value