Question
A bond with a coupon rate of 8% sells at a yield to maturity of 9%. If the bond matures in 10 years, what is
A bond with a coupon rate of 8% sells at a yield to maturity of 9%. If the bond matures in 10 years, what is the Macaulay duration of the bond? What is the modified duration? What if the yield to maturity is 7%, what is the Macaulay duration now? What does this tell you about the relationship between duration and yield to maturity?
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Contemporary Issues In Finance
Authors: Simon Grima, Frank Bezzina, Inna Romanova
1st Edition
1786359073, 978-1786359070
