Question
A municipal bond has a $1,000 face (par) value. Its yield to maturity is 5 percent, and the bond promises its holders $50 per year
A municipal bond has a $1,000 face (par) value. Its yield to maturity is 5 percent, and the bond promises its holders $50 per year in interest (paid annually) for the next 3 years before it matures. What is the bonds duration?
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
Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
10th Edition
0073530697, 9780073530697
