Question
A $1000 principal bond, paying a coupon of 8% semi-annually (Coupon of $40 every six months), is priced at $974.21. The bond's semi-annual yield is
A $1000 principal bond, paying a coupon of 8% semi-annually (Coupon of $40 every six months), is priced at $974.21. The bond's semi-annual yield is 4.5% (Yield can be estimated from the bond's price and cash flow). What is the Macaulay Duration of the Bond?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Investments
Authors: Zvi Bodie
12th Edition
1260819426, 9781260819427
