Compute the durations of the following bonds and rank them on the basis of their price volatility. Assume that the current rate of interest is 8 percent.
Confirm your ranking by calculating the percentage change in the price of each bond when interest rates rise from 8 to 12 percent.
Definitions:
Mode
The mode, or the value with the highest frequency, in a set of numbers.
Males
Refers to the male gender or sex, typically used in studies or statistics to denote participants or subjects that are biologically male.
Females
Females refer to the sex of an organism, or a part of an organism, that produces non-mobile ova (egg cells) and can typically bear offspring or produce seed.
Exam Mean
The average score obtained by all the examinees in an examination.
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