Task 1
The bond with maturity term 10 years, face value 1000 EUR and coupon rate 10% was purchased for the price of 900 EUR.
-
Calculate duration of this bond.
-
Estimate a change in the bond price corresponding with an increase in redemption yield until maturity of bond by 3%.
Task 2
What were theoretical price and the rate of bond with face value CZK 10,000.00
on 15th April 2006 if the bond is payable on 15th October 2010 and coupons with
coupon rate 4% p.a. are paid half-yearly at all times on 15th April and
15th October with considered interest rate 5% p.a.?
