Question
A 9-year par value bond with a face value of $4500 is priced at par. The bond pays semiannual coupons at a nominal rate of
A 9-year par value bond with a face value of $4500 is priced at par. The bond pays semiannual coupons at a nominal rate of 6.5% per year. Find the Macaulay duration of the bond in years.
(A) 6.32
(B) 6.52
(C) 6.73
(D) 6.95
(E) 7.18
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School Finance And Business Management Optimizing Fiscal Facility And Human Resources
Authors: Craig A. Schilling, Daniel R. Tomal
2nd Edition
1475844026, 978-1475844023
