Question
At t=0, you purchase a four-year, 5 percent coupon bond (paid annually) that is priced to yield 6 percent (0.06) continuously compounded (YTM = 6%
At t=0, you purchase a four-year, 5 percent coupon bond (paid annually) that is priced to yield 6 percent (0.06) continuously compounded (YTM = 6% or 0.06 continuously compounded). The face value of the bond is $1,000. The bond issuer is the U.S. government (no liquidity risk).
What is the Duration of bond in years at time t=0?
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Personal Finance For Musicians
Authors: Bobby Borg
1st Edition
1538163306, 978-1538163306
