Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A 15-year bond, which was issued on June 1, 2015, has a current price of $800, a maturity value of $1,000, and matures in 5
A 15-year bond, which was issued on June 1, 2015, has a current price of $800, a maturity value of $1,000, and matures in 5 years. If interest is paid semi-annually and the bond is currently priced to yield 8%, what is the bond's duration? (Assume a basis of 360-day year, 30-day months). Round your answer to the nearest hundredth.
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