2. Finance
3. 1a calculate the price and duration for the following bond...

# Question: 1a calculate the price and duration for the following bond...

###### Question details

1.a. Calculate the price and duration for the following bond when the going rate of interest is 3%. The bond offers 2.75% coupon rate, matures in 3 years and has a par value of $1,000. Show full calculations in the table below.  YR PV of$ 1 at 3% Bond Cash Flows PV (Cash Flows) Year * Present Value of Cash Flow 1 2 3 3 Total

Price =

Duration