Question
5. A bond has just been issued. The bond will mature in 8 years and has a yield to maturity of 10%. The bonds annual
5. A bond has just been issued. The bond will mature in 8 years and has a yield to maturity of 10%. The bonds annual coupon rate is 8% and the face value of the bond is $1,000. Coupons will be paid quarterly. a. Compute the bonds duration using the basic duration formula, i.e., the Macaulay duration formula (DO NOT use Excels Duration function or the VBA function dduration).
PLEASE USE EXCEL
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
