Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An 8% coupon bond with a par value of $1,000 and a maturity of 3 years has a yield to maturity of 9.02%. Coupons of

An 8% coupon bond with a par value of $1,000 and a maturity of 3 years has a yield to maturity of 9.02%. Coupons of the bond are paid annually. What is the modified duration of this bond?

a.

2.9145 years

b.

2.5503 years

c.

2.6875 years

d.

2.4490 years

e.

None of the options.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forex This Book Includes Forex Beginners Forex

Authors: Jordon Sykes

1st Edition

154063180X, 978-1540631800

More Books

Students also viewed these Finance questions

Question

2. What is risk management?

Answered: 1 week ago