Calculate the duration of a five-year bond with a face value of $1,000 and a coupon rate

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Calculate the duration of a five-year bond with a face value of $1,000 and a coupon rate of 8%. Assume that the current interest rates are 10%. What will your answer be if the current interest rates fall to 7%? Show all your calculations.

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Financial Markets And Institutions

ISBN: 9781292215006

9th Global Edition

Authors: Stanley Eakins Frederic Mishkin

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Question Posted: Oct 16, 2023 07:24 AM

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Calculate the duration of a five-year bond with a face value of $1,000 and a coupon rate

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To calculate the duration of a bond we can use the following formula Duration Sum of Present value o...View the full answer

Financial Markets And Institutions

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