Calculate the requested measures in parts (a) through (d) for bonds A and B (assume that each bond pays interest semiannually): (9 points) A B Coupon rate 7% 7.5% Yield to maturity 7% 6.5% Maturity (years) 4 8 Par $1,000.00 $1,000.00 Price $1,000.00 $1,061.62 (a) Price value of a basis point (2 points) (b) Macaulay duration (6 points) (c) Modified duration

what are your options to your question?

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

answer/// equals both average variable cost and average total cost at their respective minimums;