Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions