Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 27, 2024

A bond pays annual coupons. The coupon rate is 7%, the par value is $1000. It matures in four years and the yield maturity is

A bond pays annual coupons. The coupon rate is 7%, the par value is $1000. It matures in four years and the yield maturity is currently 5%. What is the duration of the bond?

I have already found the price of the bond but I cannot figure out how to calculate duration.

Price = 1070.92

Thank you.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Introduction To Mathematical Finance Discrete Time Models

Authors: Stanley R. Pliska

1st Edition

1557869456, 9781557869456

More Books

Students also viewed these Finance questions

Question

★★★★★

Use the parallel-axis theorem to find the moment of inertia of a solid sphere of mass M and radius R about an axis that is tangent to the sphere(Figure). -9-- 1 R

Answered: 1 week ago

Question

★★★★★

In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated...

Answered: 1 week ago

Question

★★★★★

Let X be a variable that follows the Poisson distribution with parameter ???? >

Answered: 1 week ago

Question

★★★★★

Following are five series of costs A through E measured at various volume levels. Examine each series and identify which is fixed, variable, mixed, step-wise, or curvilinear. Volume (Units) Series...

Answered: 1 week ago

Question

★★★★★

Derek will deposit $3,400.00 per year for 30.00 years into an account that earns 12.00%, The first deposit is made next year. How much will be in the account 39.00 years from today? Answer format:...

Answered: 1 week ago

Question

★★★★★

Gage Corporation has two operating divisions in a semiautonomous organizational structure. Adams Division, located in the United States, produces a specialized electrical component that is an input...

Answered: 1 week ago

Question

★★★★★

Exercise 5.3 (Algo) Worksheet through Adjusted Trial Balance. LO 5-1, 5-2 On January 31, 20X1, the general ledger of Johnson Company showed the following account balances. Accounts Cash Accounts...

Answered: 1 week ago

Question

★★★★★

The General Duty Clause is often used to cite employers in the absence of a specific regulation. Provide an example of when you believe the Occupational Safety and Health Administration (OSHA)...

Answered: 1 week ago

Question

★★★★★

15. Mr. Debtor owes Mr. Creditor P100, 000. On the due date, Mr. Debtor delivers a cashier's check for the full amount. Mr. Creditor refuses to accept the check. a. Debtor may make a consignation by...

Answered: 1 week ago

Question

★★★★★

How to identify hardware in a system using CLI or GUI? Make sure you cover the 5 major components of your computer along with the other components that are of interest (things like networking and GPU...

Answered: 1 week ago

Question

★★★★★

1. What music streaming services do students at Olympia High use? 33% of students use Apple Music, 41% use Spotify and 18% use both services. A-Apple Music S=Spotify (a) Create a two way table to...

Answered: 1 week ago

Question

★★★★★

2. Who should participate in the program? All employees? Selected employees?pg 87

Answered: 1 week ago

Question

★★★★★

2. In groups of four or five students, meet with one or two administrators and faculty members in your college or university and, based on this, write a two-page paper on the topic the faculty...

Answered: 1 week ago

Question

★★★★★

4. In groups of four or five students, interview a small business owner or an HR manager with the aim of writing a two-page paper addressing the topic steps our company is taking to reduce voluntary...

Answered: 1 week ago

Previous Question Next Question