Question
A bond with 3years maturity and face value of $1000 has a coupon rate of 5%. The yield to maturity is YTM 10%. The cash
A bond with 3years maturity and face value of $1000 has a coupon rate of 5%. The yield to maturity is YTM 10%. The cash flows are Year 1 = 50, Year 2 = 50, Year 3 = 1050. Calculate the duration of the bond?
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
Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. FinklerDaniel L. Smith, Thad D. Calabrese
6th Edition
978-1506396811, 150639681X
