Calculate the duration of a 6 percent, $1,000 par bond maturing in three years if the yield to maturity is 10 percent and interest is paid semiannually.

a.	1.35 years
b.	1.78 years
c.	2.50 years
d.	2.78 years
e.	2.95 years

ANS: D

(1)	(2)	(3)	(4)	(5)	(6)
	Cash			PV as %
Period	Flow	PV @ 5%	PV of Flow	of Price	(1) (5)
1	$ 30	.9524	$ 28.57	.03180	.03180
2	30	.9070	27.21	.03028	.06056
3	30	.8638	25.91	.02884	.08652
4	30	.8227	24.68	.02747	.10988
5	30	.7835	23.51	.02617	.13085
6	1030	.7462	768.59	.85544	5.13264
			$898.47	1.00000	5.55225

The duration equals 5.55225 semiannual periods or 2.77613 years.

i want to know how to get PV as % of price and PV at 5%