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A 20-year bond has a coupon rate of 12% and pays semiannually. If the yield to maturity is 9%, what weight would you apply to
A 20-year bond has a coupon rate of 12% and pays semiannually. If the yield to maturity is 9%, what weight would you apply to the final cash flow in the duration calculation. (Importantly, note that answering this does not require calculating duration.) Enter your answer as percentage points rounded to the nearest 2 decimal places; for example if the final cash flow weight is 0.05321 = 5.321%, you should enter this as 5.32.)
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