Question
a. What is the duration of a two-year bond that pays an annual coupon of 10 percent and has a current yield to maturity of
| a. | What is the duration of a two-year bond that pays an annual coupon of 10 percent and has a current yield to maturity of 12 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616)) |
| Duration | years |
| b. | What is the duration of a two-year zero-coupon bond that is yielding 11.5 percent? |
| Duration | years |
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Introduction To Estimating Economic Models
Authors: Atsushi Maki
1st Edition
0415589878, 978-0415589871
