Question
A 2-year bond with a 6% (not 12%) coupon rate has a YTM of 15%. What is the duration of the bond using the closed-end
A 2-year bond with a 6% (not 12%) coupon rate has a YTM of 15%. What is the duration of the
bond using the closed-end method (i.e. long formula)? (Assume semi-annual compounding)
A. 7.624 years.
B. 3.812 years.
C. 4.934 years.
D. 2.467 years.
E. 1.906 years.
F. 1.234 years.
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
