A bond with 3 years to maturity and a coupon of 6.25 percent is currently selling at $932.24. Assume annual coupon payments. What is its yield to

What is its yield to maturity?

Compute its duration using Equation 5.7 and the yield-to-maturity calculated above as the discount rate.

• If interest rates are  expected to decrease by 50 basis points, what is the expected dollar change in  price? What is the expected percentage change in price

( i need the answer in word doc. )

N = 3, PV = -932.24, PMT = 62.5, FV = 1000YTM = 8.9232%Year Cash Flow PV Weight of PV 1 62.5 $57.3799 6.1551% 2 62.5 $52.6792 5.6508% 3 1062.5 $822.1816 88.1942% Total 932.24 Duration = 6.1551% *…