Your company has invested in an ABC semi-annual paying bond. The
coupon is 10%, and the current yield is 6.45%. Your friend contacts
you to advise that he is a big buyer of ABC bonds. He offers to buy
$25,000,000 of the bond from you at 6.50%. The maturity date of the
bond is the 15th of November, 2023. If you sell the bond, the
settlement date will be the 4th of November, 2019.
Calculate the duration and modified duration...