Question
A bond with a coupon rate of 7 percent sells at a yield to maturity of 9 percent. If the bond matures in 15 years,
A bond with a coupon rate of 7 percent sells at a yield to maturity of 9 percent. If the bond matures in 15 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.)
The answer is not: Macaulay Duration: not 9.238 or 11.526 Modified Duration: not 8.475 or 10.574
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
