Question
An investor buys a 5% annual payment bond with three years to maturity. The bond has a yield-to-maturity of 6% and is currently priced at
An investor buys a 5% annual payment bond with three years to maturity. The bond has a yield-to-maturity of 6% and is currently priced at $97.326988 per 100 of par. What is the bonds Macaulay duration? Calculate bond modification duration? What does modification duration tell us?
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Financial Management Principles And Applications
Authors: Arthur J. Keown
9th Edition
013033362X, 9780130333629
