Consider a bond with semiannual coupon payments of $50, a principal payment of $1,000 in 5 years,

Question:

Consider a bond with semiannual payments of $50, a principal payment of $1,000 in 5 years, and a price of $1,000. Assume that the yield curve is a flat 10%. What is the duration of the bond?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...