Question
A 5-year Treasury Strip Bond (i.e., zero-coupon bond) with a face value of $1000 is currently selling for $747.26. a. Calculate the yield to maturity
A 5-year Treasury Strip Bond (i.e., zero-coupon bond) with a face value of $1000 is currently selling for $747.26.
a. Calculate the yield to maturity of this bond.
% (State your answer as a percent, e.g., for 5.1 percent state as 5.1, not 0.051. Round your answer to two decimal places.)
b. Calculate the duration of this bond?
years (Round your answer to two decimal places.)
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Monetary Policy Strategy
Authors: Frederic S. Mishkin
1st Edition
0262513374, 978-0262513371
