# Bond Duration Calculation

Calculate the effective duration of a bond to a 100 basis point change in interest rates with a 6-1/4 coupon, 10-years remaining to maturity, and an asking quote of 110.7811 (decimal, not 32nds).

Calculate the effective convexity to a 100 basis point change of the bond in Question 5.

Calculate the total percentage price change (duration and convexity) to a 65 basis point decrease in interest rates for the bond in Questions 5 and 6.

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#### Solution Preview

** See the attached file. **

Thanks.

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Bond Duration

5. Calculate the effective duration of a bond to a 100 basis point change in interest rates with a 6-1/4 coupon, 10-years remaining to maturity, and an asking quote of 110.7811 (decimal, not 32nds).

Coupon rate 6.25%

Time to maturity 10 years

Price of Bond (V1) 110.7811

Face ...

#### Solution Summary

This solution shows step-by-step calculations in an Excel file to determine the effective duration of a bond with interest rates taken in consideration. It also calculates the effective convexity and the total percentage price change.